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Two new payment providers added to Ripple's xRapid platform

Jan 26, 2018 Posted /  3475 Views

Two new payment providers added to Ripple's xRapid platform

After a surge to $4, Ripple dipped down many times and then surging again. However, in the latest round of events Ripple has signed deals with two major international payment providers that supervise millions of transactions that take place globally each year. The company is providing its xRapid platform to IDT Corporation and MercuryFX which will allow institutions to preserve on the expenses of accessing and providing liquidity to their customers.

Ripple on a mission

Ripple is currently on a mission to prove that its xRapid platform is faster and cheaper than other payment platforms that are currently available in the market. The platform is intended to permit international money transfer services and central banks to free up capital frequently tied up in what is identified as Nostro and Vostro accounts.

Nostro and Vostro

A Nostro account can be defined as an account which is owned by a domestic bank at a foreign bank and usually, the account is opened in the foreign bank's national currency. In a similar scenario, if a foreign bank opens a very same account in the domestic bank, it will be considered as Vostro (which is the Latin for "yours"). Herein, the money will be held in the local currency and the funds will belong to the foreign banking institution.

If we think about a global scenario now, banks, financial institutions and global payment providers have funds being transferred, held, locked at all times. We are talking about hundreds of millions of dollars in liquid assets secured between one another at most of the times. Now imagine this situation when we lock down all these funds on a third party platform secured by the blockchain technology. This will help the funds to flow more independently, saving time, and diminishing the cost for all the involved parties.

The two new additions

Ripple has partnered with two new payment providers and these new additions to the Ripple family will facilitate the company to have new positives in the new year and have better-planned future. Lately, Moneygram, the second largest global payment provider in the world also announced that it will experiment and test the xRapid platform. The leading payment service said that it will collaborate with Ripple along with Mexican Bank Cuallix.

Last November, Ripple declared a deal with credit card issuer American Express. An Amex executive commented that Ripple’s platform would play a transformational part in the direction of effectual services to customers.

The entire list of contemporary Ripple partners is certainly a long one, listing over 100 central banks and many more payment providers. It appears that list is only continuing to grow longer and longer as more and more payment providers look to release up liquidity and reduce their costs in a manner they were never capable to do before.

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Tags: xRapid platform local currency Ripple

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