Ripple Expands Its Global Payment Network with 5 New xVia Customers

Siamak Masnavi

Ripple, the San Francisco based blockchain company focused on improving global payments, has announced five new customers for its xVia product.

The new customers - FairFX (UK), Exchange4Free (UK), RationalFX (UK), UniPAY (Georgia) and MoneyMatch (Malaysia) - will use xVia to send payments over RippleNet (Ripple's decentralized global network of banks, payment providers, digitial asset exchanges, and corporates).

xVia allows payment originators -- those sending payments on a client's behalf , but not responsible for actually processing the payment and paying it out to the recipient -- to get access to RippleNet via a web services API (Application Programming Interface) without needing to install any software. Through this standard interface, they can send real-time trackable payments (with rich information, such as invoices, attached) globally. It significantly reduces their operating costs because there is only a single point of integration. In Ripple's words, it allows "a variety of different players within the global payments ecosystem to interact and complete transactions directly — no longer requiring custom connections."

According to Asheesh Birla, Senior Vice President of Product at Ripple, by tapping into RippleNet, these new customers will be able to "access new markets quicker and cost efficiently" because they would be able to avoid the problem of "building bespoke connections to banks and networks all over the world", which is "expensive and time consuming"; using xVia, they can reach "new customers in new markets, easier than ever before."

In addition to the benefits of lower operating costs, speed, and real-time payment status, payment originators using xVia to access RippleNet get one other important benefit: lower failure rates (since only one connection needs to be maintained) and thereby lower manual reconcilation costs.

One of these new customers, UK-based Exchange4Free, tweeted that it had joined Ripple's global payment network because it was hoping for improved access to African markets:

 

Cryptocurrencies “Pose a Threat to Political and Financial Stability’, Says Deutsche Bank

Research from financial services giant Deutsche Bank argues that non-sovereign cryptocurrencies “pose a threat to political and financial stability” as a “real digital payment revolution” has been underway for the past decade.

In the first part of three in its “The Future of Payments” reports, the Germany-headquartered financial institution revealed it doesn’t believe cryptocurrencies are going to replace cash any time soon, even though they have “passed the tipping point needed to become fashionable.”

Deutsche Banks’ report claims cryptocurrencies are still in an early adoption phase, but pose a threat given the current changes cash is undergoing. While the report says it’s “unlikely to disappear anytime soon,” it notes it’s losing ground as a payment method as several countries removed large notes from circulation and “implemented policies to replace traditional payment methods with digital solutions.”

The report adds:

In the midst of these changes, non-sovereign cryptocurrencies pose a threat to political and financial stability.

The financial institution’s report also added that cryptocurrencies like bitcoin are “too volatile” to be a “reliable” store of value, given the significant price fluctuations they went through between 2017 and 2018. Bitcoin itself, for example, went from $1,000 in early 2017 to a near $20,000 all-time high by December 2017, only to then drop to a $3,200 low seen in December 2018.

Since then the cryptocurrency has been recovering, as according to CryptoCompare data it’s now trading at $8,780. The institution’s researchers added that BTC payment still represent a fraction of global payments, although payments in cryptocurrency have taken off.

As CryptoGlobe covered, data suggests a total of $2.5 trillion worth of BTC were transacted on the Bitcoin network in 2019, with the average transaction value being of 2.75 BTC, or $23,000. In comparison, Visa’s network reported a total transaction volume of $11 trillion in 2018. Deutsche Bank, nevertheless, showed it believes cryptocurrencies have the potential to “revolutionize” payments, although it may not be BTC itself.

Looking ahead, it may not be surprising if a new and mainstream cryptocurrency were to unexpectedly emerge.

In June of last year, the bank argued that rate cuts from the Federal Reserve were likely going to give bitcoin a boost, as global growth was slowing down as a result of falling business confidence.

Featured image via Pixabay.