Although we are living in times of the great technical exposures that enrich every facets of daily routine, there are some processes still direly needing optimization. A banking settlement system is one of such processes that can be drastically changed owing to the cutting-edged blockchain technology.
Today the SWIFT acts as a major provider of the international payment network used by financial institutions worldwide to send and receive information about performed transactions. The organization transports financial messages in a highly secure and reliable way, but due to a lack of competitors in the industry, their services have very hefty price tag.
Moreover, continuously high network load stemming from over 11,000 financial institutions in more than 200 countries, who were exchanging an average of over 15 million messages per day, results into the low transactions speed as when it comes to verification and remittance confirmations between long-distanced points.
From the very beginning Ripple was conceived as an innovative replacement for the SWIFT streamlining international banking payments in a matter of seconds, while keeping all required remittance details captured into immutable digital records. Near real-time transactions are said to be affordable as well since the fund movements are offered with zero commission.
Considering the abovementioned features, digital payment provider TransferGo has trialed Ripple to reap benefits of a multi-billion worth remittance corridor between India and Europe. In the recent announcement, the company said Ripple is the one destined to draw a close for multiple slow incumbent communications systems, prominently the SWIFT.
Founder and CEO of TransferGO, Daumantas Dvilinskas emphasized that Ripple’s blockchain was what permitted the firm to provide immediate money transfers, adding that they were capable of “establishing real-time communication between us and our banking partners in India.” He also said this respective blockchain was what helped the firm attain their goal of transacting internationally.
For TransferGO choosing India as the country to introduce Ripple technology was supposedly obvious, as the Indian market has already considered and accepted the likes of Ripple despite the government’s and RBI decision to deliberately stifle growth.
Along with its real-time money transfer option, which implies a small fee, the company is also launching a free service to be available for the same Europe-India channel. Based on Ripple’s network, the free service will process transfers within 2-3 days with a mid-market rate.
As soon as Ripple has coordinated a series of lawsuits claiming “XRP is a Security”, the Ripple team took a brief sigh of relief and rushed to catch an opportunity of fruitful collaboration with TransferGO. The Ripple’s Senior Vice President of Customer Success, Marcus Treacher, called the firm a “forward-thinking payment provider” that not only embraces new technology, but also does so in a way that encourages “real-time, cross-border money transfers for their customers.”