Ripple (XRP)’s xCurrent to facilitate crossborder payments at Amercian Express
Ripple (XRP)’s xCurrent tool will be used by American Express, or AMEX to carry out cross border payments. American Express is a world renowned international financial services company which provides their customers with banking and payments solutions. Overall, the financial services giant is estimated to hold a revenue of around $33 Billion with over 50,000 people in their employ. Ripple is the Blockchain company behind the cryptocurrency XRP, which is the 3rd largest digital currency according to market cap. Ripple which has been on a collaborating spree of late has definitely hit the jack pot with this!
xCurrent is RippleNet’s Blockchain-based infrastructure which enables faster, cheaper and transparent global payments. Its customers can connect to the infrastructure without having to go through a complex integration process. Mainly because the interface is so designed that it can be easily adopted. The Blockchain based start-up announced the news of the partnership in a blog post.
Challenges in cross border payments
In the post, they also discuss the challenges that small/medium sized businesses face when they need to make cross border payments. Payments made through the current banking processes include heavy fees and long periods of time to verify and settle transactions. At present, AMEX is one such company which enables companies to make cross border payments. But on the flip side, payments of small value don’t make sense because they incur such heavy transaction fees.
But what about companies which need to make them frequently and very quickly? So most often traditional methods for cross border payments aren’t suitable. AMEX recognized this flaw in the system and decided to use xCurrent to help small-and-medium-sized enterprises (SMEs).
The VP of AMEX, Colin O’Flaherty said,
“Ripple offers instantaneous, point-to-point conversations between the sender and receiver of funds. And that provides a real opportunity to alleviate most of the issues our customers are facing.”
Ripple explained in their blog post saying,
“American Express distinctly understands the issues that SMEs face with traditional banking, from cross-border payments to access to credit. The company’s “Open Forum” is a highly regarded and popular platform for resources and support to help small-to-medium businesses grow.”
They further added,
“Together with Ripple the companies are working to address the problems their customers face with cross-border payments. Ripple’s xCurrent provides a new blockchain based infrastructure for global payments. American Express customers are connecting to this infrastructure in a way that is designed for maximum impact and the best possible user experience.”
Ripple’s xCurrent + other initiatives
As of now, American Express are currently using Ripple’s xCurrent to process some payments. But O’Flaherty adds that the two companies are aligned in several areas to help SMEs like user experience and customer service. It also appears that the international financial payments giant wants to expand on this. As part of their cross-border payment solution, they also wish to develop new fraud prevention services, on the Ripple Blockchain.
The blog post elaborated on this saying,
“With Ripple-powered blockchain helping facilitate transactions behind the scenes, American Express customers in the U.S. are already seeing quicker payments. Ripple and American Express have also aligned from a fraud perspective — risk, user experience and customer service. This has allowed for a “holistic experience” that’s ultimately benefited the customer.”
It also read,
“American Express’s intention is to expand based on successes to date — to focus on making Ripple-enabled services available across new global corridors with the large transaction flows.”
O’Flaherty also commented, saying,
“We’re still in the early stages, learning a lot. And blockchain offers a big opportunity to solve real customer needs.”
Image via Shutterstock
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