Per an official announcement from SBI group in Japan, Money Tap, a payment app set up by SBI is all set to partner with the PayPay system. Interestingly, the new venture will use XRPL instead of CAFIS infrastructure.
Faster Payment Processing With XRPL
PayPay has a user base of over 10 million people in Japan and has 1 million merchants and local stores. Presently, Money Tap uses Ripple’s xCurrent system which is much more efficient and cheaper than Ripple’s xCurrent system.
The announcement states,
In this business alliance, when a user charges PayPay balance from a bank account, it does not go through the existing infrastructure such as CAFIS (* 1) through Money Tap infrastructure provided by Money Tap. You can charge directly from your bank account. This will reduce the burden of connection with individual financial institutions at PayPay, and will enable connection with operators at a lower cost than existing infrastructure at financial institutions.
Furthermore, Financial Tap and API-connected financial institutions will work towards developing charge-type services for other payment providers in addition to the inter-individual remittance service already in service. There is also a possibility that over-the-counter payment services are also rolled out. Additionally, Money Tap is also in talks with multiple operators for the launch of its new service. PayPay has been offering new smartphone payment service since October 2018. The service allows for payment using bar codes and QR codes.
Other Ripple Partnerships
Earlier, this month Ripple partnered with fintech firm Finastra. Using Ripple’s blockchain-based platform, Finastra users can connect with 200 partners on RippleNet. The deal aims to boost integration with other network partners and provide faster updates. Following the announcement of the partnership, XRP rose by 27%.
Also, recently Ripple’s Xpring launched a developer kit and tools for coders to build payment rails into any app.
What is the next development goal on Ripple’s list? Let us know, what you think in the comments below!