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:

 

Amount of XRP Sold by Ripple Decreased 80% in Q4 2019

Ripple’s sales of the XRP token have dropped by 80% during the fourth quarter of last year, as them firm sold a total of $13.08 million worth of the third-largest cryptocurrency in Q4.

In comparison, Ripple sold a total of $66.24 million in the third quarter of last year. Behind the decline was a steep drop in institutional direct sales conducted over-the-counter, and a complete halt of programmatic sales.

In a recently published report, the blockchain payments firm wrote that it “continued the pause of programmatic sales” and only focused on its OTC sales with “a few strategic partners, who are building XRP utility and liquidity in strategic regions.” Ripple’s programmatic sales in Q4 were nonexistent, compared to $16.12 million worth of XRP sold in Q3.

The report reads: "In Q3 2019, Ripple further reduced XRP sales and paused programmatic sales. Ripple maintained this approach throughout the entirety of Q4."

In the third quarter of 2019 Ripple’s XRP sales dropped by 74% as the company decided to halt programmatic sales after dealing with an uptick in “FUD” and the “spread of misinformation” regarding XRP, which included reports of inflated volumes. In Q2, Ripple sold a total of $144 million worth of the cryptocurrency.

According to CryptoCompare data, the price of the XRP token dropped over 20% during the last quarter of 2019. The token is currently trading at $0.226 and its market cap is of $22.64 billion. In the last 24-hour period, XRP dropped 3.7% amid a wider decline in the market.

XRP’s average daily trading volume, according ot Ripple, decline in the fourth quarter as well. The report reads:

The average daily volume was reported at $187.34 million in Q4 versus $198.10 million in Q3, and below Q2’s reported $429.51 average daily volume.

In its report, Ripple reaffirms it didn’t create the XRP token, but was rather “gifted a portion” in September 2012 after the company was created.

Featured image via Pixabay.