Novatti Group joins Ripple's cross-border payment system and its RippleNet network, adopting XRP as its currency.
This was announced by Ripple and is a continuation of an agreement reached in December 2020.
Novatti is a payment solutions company. The agreement between Ripple and Novatti will initially handle the exchanges between Australia and the Philippines through the iRemit provider.
The Philippines is the third largest remittance country in Asia, and many Filipinos send money home from abroad. In 2020 alone, despite the pandemic, $ 33.19 billion came to the Philippines from other countries. However, commission costs and deadlines make this process difficult.
The partnership between Ripple and Novatti
That is why Novatti decided to use RippleNet to facilitate payment systems and also make them more scalable, taking advantage of its On-Demand Liquidity (ODL) service.
ODL it will guarantee instant cross-border payments without the need for pre-financing. Cross-border transactions generally require sender and receiver checking accounts in local currency, resulting in transaction fees, waiting times, and the inability to check the status of transactions.
Using XRP reduces costs and time, generates significant savings, and ultimately makes the entire system more efficient.
RippleNet is thus expanding its network of partners and the countries in which it operates. In fact, Ripple currently has partnerships with financial institutions in more than 55 countries and is working to further expand both its market and its expertise.
The partnership with Novatti is also great news for XRP as it broadens its horizons.
In the meantime, the price of cryptocurrency is retreating today, with a loss of 8% compared to yesterday. It is worth mentioning that this pullback was expected, as Ripple has been the protagonist of a real rally that took it back above $ 2 for the first time in 3 years. This week alone, the gain has been around 90%.
It is likely that as RippleNet grows, the use of XRP will also grow and this can only have a positive impact on the price.