Will Ripple (XRP) Be Accepted By Amazon?
Amazon is a giant digital merchant widely used around the world. meanwhile, Ripple (XRP) is part of the top three rising cryptocurrencies. There have been rumours suggesting that the online store will be accepting XRP as a new payment methods.
As this information has yet to be confirmed, many have speculated about what could make Ripple technology and token the right digital asset to pursue for Amazon. Especially because an inexperienced person may think that the company would prefer an equally giant currency such as Bitcoin (BTC).
However, BTC processing is quite long compared to Ripple’s and it’s more expensive. A Bitcoin transaction will take 10 minutes while XRP only takes 10 seconds. Moreover, Ripple is gaining in popularity and is being promoted by a growing number of companies that have already been supporting the cryptocurrency by using its technology.
Ripple technology shouldn’t be confused with Ripple Token, however the use of the groundbreaking tech by international and well-established financial institutions such as American Express, banks, and hedge funds has contributed to the rise of XRP due to the fact that its usage is almost an isolated case in the crypto space.
Therefore, as more companies start to accept the use of cryptocurrencies, it could be the opportunity for Amazon to enter a new market and reach a new set of users. The difficulties, that Amazon encounters regarding the cross-border payments between traders on its platform, are what sparked the rumour.
Amazon Requires Stability Over Fluctuation
Although BTC has a high-value and has been the reason of recent fortunes, this cryptocurrency isn’t right for most businesses as it’s quite expensive and fluctuates a lot. In fact, Bitcoins were used by a platform called Steam, that gave up the currency because of its high fees and its volatility.
MUST WATCH: very #timely talk on state of #blockchain & #fundamental nature of #payments by @ashgoblue, SVP #Ripple at @thesummit organized by @PaymentsCanada "This was case of Amazon paying merchants & taking weeks for cross border #payments to arrive." #FinancialInclusion 👍 pic.twitter.com/Pb5eJt03GS
— XRP.tips (@xrptips) May 18, 2018
In comparison, Ripple is very stable and grows in a steady manner so that it wouldn’t represent a giant risk for Amazon to include it in their payment methods. A lack of extreme fluctuations prevents a sudden rise in prices that wouldn’t be understood by most Amazon users. The company wants to be an accessible and easy-to-use platform that can effectively match market prices, this is why it needs a relatively secure cryptocurrency like XRP.
Moreover, this digital asset has become more present in the public eye since Ashton Kutcher donated 4 million dollars in Ripple on NBC’s Ellen Degeneres Show. This donation was made in behalf of Ripple Foundation and turned out to be huge promotion for the currency as Ellen was able to receive the money in a few seconds with a single click on a button.
Although neither Amazon or Ripple have been publicly referring to a possible partnership, due to the fact that XRP is a user-friendly and functional currency, it seems that it would be Amazon’s first choice if or when the company will adopt a crypto as a new payment method.