Cambridge Global Payments to Adopt Ripple’s (XRP) xRapid for Faster Payments
Financial services firm Cambridge Global Payments has revealed that it will use the xRapid technology of Ripple (XRP) to offer faster payments across the world. Cambridge, a Fleetcor Technologies’ subsidiary, facilitates payments in various regions including Australasia, Europe, South America and North America.
“Payment systems today are where email was in the early ’80s. Every provider built their own system for their customers and if people used different systems they couldn’t easily interact with each other. Ripple is designed to connect different payment systems together,” said the chief cryptographer of Ripple, David Schwartz.
In the recent past five financial institutions have joined the remittance network of Ripple and this is expected to strengthen the access of financial services to emerging markets that include Brazil, China and India. The aim of Ripple is to create approximately 100 billion tokens of its digital currency. Not all the tokens will be circulated though and about 50% will be kept by the firm. Some of the financial institutions that have joined Ripple’s remittance network include Western Union, Mercury FX, IDT Corporation, MoneyGram and Cualix.
Woori Bank of South Korea is also another financial institution that recently teamed up with Ripple. The two firms have already undertaken a remittance test across borders that was conducted using Ripple’s distributed ledger technology. According to South Korean media the digital strategy department of Woori Bank intends to commercialize Ripple’s platform later this year. This was the second phase of the trial as an earlier one had been conducted at the beginning of the year.
The participation by Woori Bank in piloting distributed ledger payments constitutes part of a bigger effort involving about 60 Japanese banks under the auspice of SBI group. Through a joint venture between financial giant SBI and Ripple known as SBI Ripple, there have been efforts aimed at trialing cross-border remittances using the solution developed by Ripple between banks in South Korea and Japan. The effort aims at using blockchain technology in real life cases with a view to enjoying the efficiencies which include lower costs as a result of the middlemen being eliminated.
Some of the Japanese banks involved in the effort include Mizuho Financial Group, Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group. There is also another South Korean bank Shinhan and a Thai bank, Siam Commercial Bank.
This comes in the wake of a growing sentiment among traders of virtual currencies that Ripple is a safer bet compared to Bitcoin (BTC) or Ethereum (ETH). Per published market trends the portfolios of traders are being expanded as they seek to reduce their exposure in Bitcoin which is plagued by volatility as well as certain inherent flaws which in the view of some dims its market prospects for the long term.
The attractiveness of Ripple has also been enhanced by the various partnerships it has been forming with the mainstream financial sector. This has improved the credibility of the altcoin. Additionally, Ripple is proving to be a fast, cheap, and secure settlement system that is built on the distributed ledger technology.