Report: Ripple and XRP are on the verge of "revolutionizing" the cross-border payments industry as Fintech pushes for digital disruption

A new report by Edge Markets, a Malaysian and Singaporean-based mall, says Ripple is poised to revolutionize the world of cross-border payments.

According to the report, Ripple's XRP-based software solution, xRapid, is expected to challenge the global Swift banking network by targeting emerging markets, where remittances are often particularly slow and expensive.

"From the point of view of large financial institutions, better liquidity is a key benefit. Payments, especially to emerging market parties, often require pre-financed accounts in local currency around the world, resulting in high liquidity costs. With xRapid, payment service providers and financial institutions are able to significantly reduce liquidity capital requirements by using the XRP token to provide cash on demand. "

The report highlights a study by McKinsey & Company, which found that financial technology companies have a transformative impact on the status quo of cross-border payments.

"McKinsey believes that the constant evolution of the open banking and e-commerce ecosystem will result in significant disruption in the coming years. Thus, financial institutions have no choice but to follow the movement of financial technologies. "

According to Cory Johnson, senior market strategist at Ripple, the speed and reliability of xRapid are only part of the equation.

"A single transaction on xRapid takes only a few seconds, regardless of the origin or designation of the fund. Transaction costs are also significantly lower, says Cory Johnson of Ripple's. "With Ripple software, you only expose the XRP for a few seconds, and in a few seconds the volatility is very low compared to traditional remittances. [would be held] for several days, exposing the risk of volatility over a longer period. "

Swift, the Belgium-based network that facilitates cross-border payments for 11,000 financial institutions in more than 200 countries, is working to improve its technology. The payments giant is launching a major update of its correspondent banking system, which the report describes as "relatively old".

"Certainly, Swift, the outgoing president, does not stay still. On September 12, 2018, it implemented a pre-validation service based on secure application programming interfaces (APIs), predictive badytics, and artificial intelligence, enabling its customers to detect and resolve problems. errors that delay the sending of payment messages and allow banks to provide end customers with immediate cost transparency. "

You can read the full report here.

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