Ripple-SBI Holdings JV gets license to launch MoneyTap payments app
SBI Ripple Asia, a joint venture between Ripple and SBI Holdings of Japan, announced on Wednesday that it acquired a license for handling electronic payments from the Kantou bureau of Japan’s Ministry of Finance. The license will allow SBI Ripple Asia to launch its new MoneyTap payments app, according to a statement.
Japan’s Financial Services Agency (FSA) enforced a law in June this year, which made it mandatory for any organization to be registered with local finance bureaus to conduct electronic payments using banks’ open APIs.
SBI Ripple Asia clarified that since MoneyTap app uses Application Programming Interfaces [APIs] to connect with other domestic financial institutions, it also comes under this regulation as a third party transaction agent. APIs reduce the burden of the participating domestic business by eliminating errors in the app.
MoneyTap is a payment application which will run on Ripple’s distributed ledger technology [DLT]. The app will enable peer-to-peer transactions for retail users over DLT. It will allow users to execute domestic transactions all seven days of the week using a phone number or by scanning QR codes. The app will work all 24 hours, which resolves time restrictions faced by traditional banking transactions.
The MoneyTap app is not the first payment application that runs on the Ripple network. Earlier this year, banking giant Santander Group introduced a blockchain-based application, called ‘One Pay FX’, for cross-border foreign exchange and was the first bank to offer a blockchain-based payment app to its customers.
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