Is RippleNet The Answer To Payment Speed And Transparency Issues For Financial institutions?
Brad Garlinghouse, the CEO at Ripple, opened his discourse at Swell 2019 with some very powerful words and explained how the friction in payments could be solved.
More exactly, he said the fundamental architecture of how payments are flowing needs to be reconfigured. Many of the other industries are facing disruptions at the moment because the cross-border payments infrastructure is old and hasn’t been innovated.
Ripple Wants to Make Global Payments Faster
Ripple is working closely with its customers and seems to want to reset the payments plumbing by starting with technology. At the invitation-based conference held in Singapore, Ripple’s Client Solutions director Ross Edwards and the Product Marketing VP Kevin More offered a glance at how payments are flowing on RippleNet or how the company’s customers leverage the efficiency and speed of On-Demand Liquidity (ODL).
During the live demonstration, viewers were explained how RippleNet is running, also shared a little bit of the customer experience when it comes to sending and receiving fast global payments without any friction. The problems with these payments are usually regarding speed, transparency, liquidity management, and certainty, so RippleNet wants to address them. Furthermore, Edwards and Mole have shown participants the way in which financial institutions are using their company’s system to make instant and transparent payments.
RippleNet’s ODL as a Less-Costly Alternative for International Payments
This is how a bilateral global payment experience goes on Ripple:
As soon as beneficiaries get the funds, they send a message to Fast Remit via RippleNet. This way, the customers are being confirmed in real-time that the people they were sending money to have received the payment. However, when analyzing the emerging markets, it can be noticed that international payments require businesses to have opened pre-funded accounts and above it all, in the destination’s currencies.
All this can be very costly. This is when On-Demand Liquidity (ODL) from RippleNet comes in to save the situation. ODL doesn’t require pre-funded accounts by using XRP to bridge 2 different currencies. This means the payments are sent and received instantly, in the local currency of the transaction.
MoneyGram is a RippleNet Customer that Uses ODL
Because it’s fast and reliable, the ODL system provided by RippleNet is being used by MoneyGram International. MoneyGram clients are being offered lower costs, convenience, speed and reliability. This is what MoneyGram’s chief of Global Operations Kamila Chytil had to say about her company’s experience with ODL:
“We’ve leveraged On-Demand Liquidity on RippleNet to dramatically reduce our operational costs and process global payments at unprecedented speeds.”
ODL has changed the game for financial institutions. The Swell demonstration revealed how the system works in real situations, also how the customers can benefit from it 24/7, every single day.