Ripple Inc. is a US-based technology company with a vision to “change the world.” They are doing this by providing seamless, low-cost domestic cross border payments. RippleNet is the primary payment network system which has more than 200 participants. These include major banking corporations and financial institutions.
In its pursuit of building a global payment and settlement system, Ripple has set up many regional offices and organized local events. The Director of Business Operations at Ripple, Jinal Surti, emphasized the need for regional offices to understand the cultural differences and grow sustainably in the recent episode of The Ripple Drop.
He added that “Stepping back we are a cross border payments company.. By definition, we have to global because our customers are global. The regions behave slightly differently. What we were doing is were hiring teams that are closest to the customers in those regions so that differences are taken into account as we expand our presence”
These expansions are now being focused on the APAC (Asian Pacific) Regions.
China and Japan
The two largest economies in the southeast Asian region are Japan and China. Both of these countries have shown tremendous growth in digital payments.
According to Zennon Kapron, the head of Kapronasia, which is a leading financial technology market research and consulting firm covering payments, banking, capital markets, and blockchain technology,
The growing importance of digital for both online and offline transactions can be attributed to three converging trends: the rapid rise of non-cash payments, an explosion in smartphone use and the ubiquity of QR codes. The combined effect of these three when applied across billions of consumers in Asia has pushed digital payments into primacy for the region.
The yearly volume of digital payments in China was around $40 trillion dollars in 2018 while the same in the US was only $125 billion.
India and Japan have also made considerable progress towards digital payments. Post demonetization in India more than 5 million merchants have started to accept digital payments. The population of the Asian Pacific region is almost 4 billion. Hence it gives the perfect opportunity of companies like Ripple to set up a ubiquitous payment network.
Kapron addressed an informed crowd at the Ripple Regional: Asia Pacific Conference at Bangkok, where he hinted at the growth of a payments platforms like Ripple. Ripple has given rise to new payment as platform models and challenged the supremacy of cards. The result will be further convenience, speed and cost savings for consumers and corporates alike.
Finally, Senior Associate at Ripple Amy Hirth noted that “There is a lot of opportunities here in southeast Asia to improve global payments and Ripple is really at the forefront of that.”