Meeting the Needs of the New Corporate


This is what shipping over a billion products looks like. Image: Álvaro Ibáñez

New corporates share a few key similarities. They have a global focus, a digital footprint and operate on a platform business model — connecting consumers directly with suppliers. These values are exemplified among the giants of the type: Uber, Amazon, Alibaba, Google. These strategies paid off for many of these new corporates. Google made the S&P 500 in just six years, while Uber and Airbnb made it in seven. Facebook and Amazon caught up just after that. Compare these to the giants of a generation before; Microsoft took 19 years to add itself to that elite list of companies. Hewlett Packard took more than 30.

However, many new corporate giants face the same challenge today: global payments. They need to send high volumes of low-value disbursements across the globe’s many disparate banking networks and payment platforms. Some, like Alibaba, have elected to structure their own payments business internally rather than struggle with the rails available to them.

Why? Banks today either don’t or can’t support cost-efficient real-time cross-border settlement.

Take Amazon’s struggles to make payments across the globe as an example. Amazon shipped over a billion products last year, spending $3.36 billion on shipping costs in a single quarter to get orders delivered to Prime customers within two days. However, they can only disburse payments in a few dozen currencies and only as often as every 24 hours. Banks receiving these disbursements then hold them for 3-5 days, for their own clearing procedures.

Alibaba’s payment platform Alipay solves some problems for the mercantile giant: it allows for the collection of cross-border payments between online merchants and Chinese customers in RMB. It currently supports disbursement in only 12 currencies, and settles with the receiving bank on a T+1 basis. The receiving bank then adds its own settlement period to that timeline.

These were the best solutions two of the largest and most powerful corporates in the world can offer their customers, vendors, and partners. Until now.

Banks all over the globe are working toward better payment and settlement systems as they work to catch up to today’s real-time demands and customer’s expectations of instant settlement.

Working with Ripple enables banks to service their corporate customers that need to send efficient low-value payments across different payment networks, on-demand, in real time, at a fraction of the cost of traditional rails. This innovation ensures that banks are not just improving the service for their customers today, but also preparing their infrastructure for their customers’ needs tomorrow. Amazon and Uber are only getting bigger; banks that handle payments for new corporates must seek solutions that are ready to scale.

While other solutions are working toward real-time cross-border settlement, Ripple is offering it today with an ever-expanding network.  The most cost-effective way for banks to provide for the increasingly challenging needs of new corporates is to partner with a company who can offer the technology and integrate it quickly, like Ripple.

Contact us to find out how Ripple integrates with banks like yours.