Lower Total Cost of Settlement
Originators initiate payments and cross-currency transfers on the Ripple network. Corporations, traders, and investors originating and receiving payments use the existing system that is costly, slow, and uncertain. As a result of the uncertainty, payment originators currently have to pre-fund accounts at foreign banks for regular international payments, increasing their working capital requirements. Originators are usually locked into a FX rate provided by a single liquidity provider as a result of the correspondent banking network. Ripple can provide real-time settlement capability with complete visibility and certainty of payments in a competitive FX marketplace for the lowest total cost of settlement for originators.
Benefits for Originators
- Ripple provides complete visibility into fees and FX rates, while minimizing the risk of payment failures
- Settlement takes seconds on Ripple, eliminating the frustration and risk of confirmation delay
- Ripple lowers the total cost of sending and receiving payments through direct settlement, and increasing competition among liquidity providers