The senior vice president of product management and corporate development of Ripple, Asheesh Birla, says that with the payment of home to the based in San Francisco plans to open up new remittance corridors XRP this year.
The service of cross-border payments powered by XRP from Ripple, On-Demand Liquidity (ODL), has already made some jumps in certain avenues of the industry of remittances institutional. Particularly along the corridor the united States – Mexico.
Therefore, the executive of Ripple says that the company is on the way of joining of new countries to ODL in 2020.
Ripple: New riders by 2020
The executive director of Ripple said that “Ripple is on track to open new corridors of ODL this year. We’re adding new clients and working with existing customers to increase the volume of ODL in runners important. Including USD-MXN, USD-PHP AUD-USD and PHP, and from EUR-USD.”
Although it remains unclear to what countries or brokers you plan to Ripple address in the short term. However, the company of payments noted in February that it is working on the addition of new brokers in Europe, the Middle East, Africa, Asia-Pacific and Latin America.
However, as consumers and businesses adapt to the new norm, Birla warns that the volume of ODL could be different in a world that fight against the pandemic of COVID-19.
“We continue to focus on support payments of low-value and high-frequency ODL, although the volume of transactions may seem different in this new world.”
It also said that: “in particular, we are reducing the emphasis on large payments of cash. That are traditionally used to finance businesses and services in the absence of transfers in real-time. To support the individual transactions of low value, addressing the growing need in the remittances and payments of Smes. This can reduce the volume of general transactions of ODL”.
Keep the course of cross-border payments
With the dramatic changes in the world economy, the services of digital pay-are playing an increasingly important role for the world. Due to that, the current crisis highlights the need to digitise the money, the access, speed and reliability, especially for those who send money to their loved ones.
Take into account that throughout the world, digitalization has rapidly increased: up to 80% in Italy, for example. For this reason, the global growth of digital payments is also accelerating. We see that, there is an increase in electronic transactions of over 40% and an increase in remittances digital to various payment providers.
Ripple says that the digitization of the payments world can’t come soon enough. Since, the underlying infrastructure is isolated and is complex, which leads to significant delays and high transaction rates.
In this sense, the company Ripple argues that in order to accelerate this process, financial institutions prefunded accounts in the currencies of destination. But it is a costly effort which binds the assets and exposes companies to currency risk.
For this reason, the service ODL Ripple is so important, to provide global payments instant and meet the demand of the market. The sending of cash payments requires more working capital and resources that digital payments.
Given that the active digital XRP can be sent directly, instantly and cost-effectively, without the need for a central broker. The XRP eliminates the additional costs associated with the delivery of cash payments and can be used as an alternative to the pre-financing.
The alternatives that gives to Ripple allow for greater speed and efficiency in cross-border payments.