On Monday, Ripple announced that it was partnering with Pyypl, an international blockchain-based financial services firm with offices in the United Arab Emirates.
“Ripple announced its continuing contribution to this hotbed of fintech innovation with the first-ever in-market On-Demand Liquidity (ODL) deployment in the Middle East.”
The San-Francisco-based Fintech firm noted that countries in the MENA region (Middle-East and North Africa) accounted for over $78 Billion in remittances in 2020. With the MENA region also being home to two of the top three remittance corridors according to a report by McKinsey&Company, there has been a rising demand for online remittances, necessitating the partnership.
Faster, Cheaper Remittances
Ripple, which mainly focuses on unlocking the power of blockchain through ensuring that the world can move value internationally as fast as it moves information today, aims at tapping into this region’s potential by putting in place, instant, low-cost remittances to the area, starting with the UAE in its partnership with Pyypl.
By utilizing ODL and leveraging XRP, Pyypl hopes to scale from traditional remittances by providing cheaper and faster remittance solutions to consumers remitting money home which will also eliminate costly pre-funded accounts in destination currencies.
Ripple however noted that XRP will not be held within the UAE but will only be used in transactions, eliminating the use of the AED as part of the payment flow. This is in line with Pyypl’s larger vision of fully scaling into digital payments for the over one billion untapped market with smartphone users in MENA and Africa.
Ripple’s Growth In MENA Continues
In the past, Ripple has been building around unactualized markets around the ground with the recent announcement only adding to its already growing presence in the region.
Last year, Ripple established its regional head offices in Dubai to support UAE customers while improving cross-border payments.
Last week, the firm inked a partnership with Singapore-based blockchain payment solutions provider Tranglo following Ripple’s intent to acquire a 40% stake in the firm in March 2021. Tranglo which recently launched its first live-Demand Liquidity (ODL) service on RippleNet in the Philippines seeks to expand its services in Asia and Dubai where it has already established a growing presence.
With Ripple’s growth in the MENA region having already grown fourfold since 2020, Ripple’s partnership with Pyypl is set to further propel blockchain financial solutions growth in the region which already has booming tech-hubs and a progressive regulatory environment.