Ripple is providing instant, affordable and transparent remittance system in partnership with SBI making it the largest money transfer provider in the country with 10 billion JPY in monthly payment volume.
RippleNet offers instant, affordable & transparent payments
Ripple is slowly making its way all over the globe. Indian, China, Mexico and a number of other markets with huge and profitable remittance corridors are already targeted by Ripple. Japan has long been in Ripple’s list and now in its latest blog, “The Power of Instant Remittances: RippleNet in Japan”, Ripple is sharing what exactly it is doing in the country.
Having registered a record of 1.28 million foreigners working in Japan in 2017, it is a lucrative market. However, the obsolete international payments infrastructure used “can significantly inflate the time, hassle, and cost of sending this money for workers.”
Giving the example of 45,000 Thai workers living abroad in Japan, a single payment transfer for them can “require up to 12 extra hours of work just to afford the transfer fee” and take a number of trips to a bank. Moreover, the lack of info on when a payment arrives or the payments is finally delivered makes the situation difficult and costly for the workers.
Ripple is partnering up with banks to solve these issues only as put in its blog:
“A number of pioneering banks and providers are using RippleNet’s global payments network to give workers an instant, affordable and transparent way to send needed cash to their families. One example is the collaboration between SBI Remit and Siam Commercial Bank (SCB) that leverages RippleNet to power real-time remittance payments for those Thai workers living in Japan.”
With this partnership, Ripple explains, Thai workers can open an SBI Remit account online and link it to their home account at SCB. Now, by using SBI card, they can make deposits in real time by visiting an ATM.
Ripple, SBI and the Japan banks consortium
RippleNet is further making this process smooth through its instant settlement capabilities as “money that is deposited in JPY at an ATM in Japan with SBI Remit is available to be withdrawn in THB in Thailand—mere seconds later.” Moreover, with its lower processing costs, workers can send home more of the money they earn.
The messenger API of RippleNet offers transparency by enabling SCB and SBI Remit to exchange info about the customers, rates, fees, and the delivery time. This means the workers and their families know about the costs and delivery time before even money is sent.
“Beyond customer benefits of speed, cost, and certainty, the banks can add new capabilities and lines of revenue while deepening customer loyalty.”
Ripple implementation by SBI has made the bank the largest money transfer provider in Japan with 10 billion JPY in cumulative monthly payment volume. Within 3 months, the implementation has been completed and now SBI is further expanding its work with Ripple by jointly launching Japanese Bank Consortium.
This consortium consists of 61-member banks and covers about 80% of the banking assets in Japan. It even unveiled MoneyTap, which is a first-of-its-kind mobile app powered by RippleNet that allows the member banks’ customers to settle domestic transactions instantly.
Meanwhile, another product of Ripple, digital currency XRP is enjoying gains of 4.28% at $0.269 along with the entire crypto market.
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.