The challenges associated with cross-border payments are well known, but these challenges are not relegated to financial institutions (FIs) like banks and payment service providers (PSPs). In a hyper-global and ever-connected world, the need for cross-border payments is on the rise, with an estimated $156t worth of cross-border payment flows in 2022 alone.
To address this growing need, Ripple is expanding its payments solution beyond financial institutions to now serve corporate customers like Nutrisource, Oceanus, Valency and New Horizon across a variety of segments including trade, agriculture, e-commerce, technology and supply chain.
For many unbanked individuals, remittances are a primary source of income, but cross-border payments are slow and unreliable with high fees. On average, the fee for consumers to send money across borders is 7%, or a $14 fee to send $200—a fee often incurred by the person receiving the money. For many, that $200 isn’t an added bonus, it can be life-changing. Early on at Ripple, we saw the opportunity to utilize crypto and blockchain technology to improve this system to make payments faster, cheaper and more transparent for the benefit of people who need it the most.
We started off by addressing remittances and based on interest from customers, we continued to broaden our scope and product offerings for additional use cases that were also burdened by the limitations of the legacy financial system. Since then, Ripple has continued to evolve and work closely with customers to identify and solve for new use cases like internal treasury, vendor, salary and bulk payments, which are the largest areas of growth for our global payments network in the last year.
“As the world becomes more global and connected – be it a distributed workforce or an international base of suppliers or customers – companies around the world are burdened by the broken state of payments. After years of working closely with payment service providers, banks, fintechs and financial institutions, we intimately understand the challenges our customers face on a daily basis,” said Brendan Berry, Payments Product Lead at Ripple. “Over time, a broad base of customers beyond just financial institutions have begun asking for help in solving challenges with cross-border payments. Notably, many corporate partners now want the benefits of Ripple’s crypto-enabled cross-border payments solution. Our goal is to serve any corporate customer—regardless of industry—who can benefit from faster, cheaper and more efficient cross-border payments.”
Near-instant cross-border payments are a huge benefit for customers looking to reduce their overhead and the need for pre-funded cash in multiple payout destinations and currencies. The ODL offering is a key differentiator for corporates as they look for partners who can help solve payments problems across their business.
“The solution offered by Ripple is innovative, competitive, hassle-free and supportive to businesses like ours who are transitioning from startup to mature organization. This is a game changer in providing business support for companies who are interested in a customizable and need-based digital payment solution, beyond what traditional payment solutions can offer today. We believe Ripple is the right business partner to propel that growth,” said Murari Rakshit, CEO of Nutrisource.
“At Oceanus Group, we value business partners that provide us with flexible, cutting-edge payment solutions. It is for this reason that we are very excited to partner with Ripple,” said Duane Ho, Group CFO at Oceanus Group Limited.
Ripple is on a mission to serve all companies that can benefit from faster, cheaper and more efficient crypto-enabled cross-border payments.