Ripple Announces Scoring the 200-customer Milestone: 350% Increase in Payments
Ripple Announces Scoring the 200-customer Milestone: 350% Increase in Live Payments in 2018
Cross-border payment sector is a multi-trillion-dollar industry, and simultaneously the main focus of Ripple company and their operations.
Ever since Ripple first appeared with their cryptocurrency XRP back in 2015, the company presented Ripple remittance payment system by offering cross-border products, like xCurrent and xRapid, powered by blockchain.
Ripple’s decentralization was often questioned, together with the case of the company owning 60% of existing XRP which was commonly mistaken for Ripple even though Garlinghouse insists that XRP would continue to exist even in case the company, Ripple, wouldn’t be operating.
Still, XRP is one of the top blockchain-based projects in the market, while Ripple is slowly but steadily winning the war for cross-border payment dominance against SWIFT in opinion of faithful followers of digital banking evolution.
Ripple’s Payment Systems Against World’s Biggest Banks
While XRP was questioned for its decentralization due to the fact that Ripple’s systems used by banks are not permissionless and have centralized authority, Ripple company scored over 120 partners in banks and financial institutions by far.
Ripple’s partners, among which are some of the world’s biggest banks, are using xCurrent in majority as it doesn’t require XRP in order to complete a transaction, while transactions records will be available for review only for parties with access.
Banks have no interest in cryptocurrency or permissionless, public networks, however, Brad Garlinghouse claims that many banks will turn to xRapid cross-border payment product in 2019.
xRapid is the only Ripple’s system using XRP for transactions, which is how its adoption is more likely to condition the increased demand for XRP currency.
Aiming at revolutionizing the way transactions are made, Ripple systems offer some of the fastest payment processing times in oppose to SWIFT taking up to 5 days for cross-bank transactions, which is how Ripple achieved a significant milestone.
On Tuesday, January 7th, Ripple announced that the company has achieved the 200-customer milestone, together with gaining 350% increase in customers using Ripple’s systems for sending live payments in 2018 even though its currency, XRP, lost nearly -90% of its value during the course of the last year.
Still, the biggest banks around the globe are not ready to give up and allow Ripple’s blockchain technology to take over the industry of cross-border payments, said to be counting over 2 trillion dollars.
Banks Have Advantage in Connections and Number of Partnerships
As Jeremy Balkin, the head of innovation at HSBC said for CNBC, banks apparently have advantage in the number of partnerships and numerous connections across the globe.
Brad Garlinghouse, the CEO of Ripple, is also very well aware that major banks like Citi for example wouldn’t give into cooperating with the company for cross-border payments that easily.
Citi easily makes the minimum of 8 billion dollars on cross-border payments, as noted by Garlinghouse, while Ripple’s CEO stated that Citi bank would probably be the last customer to have signed up to use one of Ripple’s products.
This is the case, as Garlinghouse concluded, because Citi has no interest in changing its status.