On Monday (15 October 2018), Moneynetint, a UK-based payment service provider for online merchants, joined RippleNet, Ripple's global payment network.
Financial institutions joining RippleNet "can process their customers’ payments anywhere in the world instantly, reliably and cost-effectively." As cross-border payments solutions provider Ripple explained in a blog post on 21 September 2018, membership of the RippleNet network offers the following benefits:
- Access: "Today, banks and providers overcome a fragmented global payments system by building multiple, custom transaction relationships with individual networks. By joining RippleNet’s single worldwide network of institutions, organizations gain a single point of access to a standardized, decentralized infrastructure for consistency across all global connections."
- Certainty: "Legacy international payments cannot provide clarity around transaction timing or costs, and many transactions ultimately end in failure. RippleNet’s atomic pass-fail processing ensures greater certainty in delivery, and its bi-directional messaging capability provides unprecedented end-to-end transaction visibility for fees, delivery time and status."
- Speed: "Disparate networks and rules create friction and bottlenecks that slow down a transaction. RippleNet’s pathfinding capabilities cut through the clutter by identifying optimal routes for transactions that then settle instantly. With RippleNet, banks and providers can reduce transaction times from days to mere seconds."
- Savings: "Existing payment networks have high processing and liquidity provisioning costs that result in fees as high as $25 or $35 per transaction. RippleNet’s standardized rules and network-wide connectivity significantly lower processing costs. RippleNet also lowers liquidity provisioning costs or can eliminate the need for expensive nostro accounts altogether through the use its digital asset XRP for on-demand liquidity. The end result is a dramatically lower cost of transactions for providers and their customers."
Moneynetint Ltd, which is authorised by the UK's Financial Conduct Authority under the Electronic Money Regulations 2011 (FRN: 900190) for the issuing of electronic money, offers accounts for both individual and company accounts:
- An "Individual Account" gives you your own IBAN in EUR, and allows you to receive EUR from the following sources: "Deposits from another account owned by you"; "Salary Deposits"; "Dividends Deposits"; and deposits from other individuals. Payments (in any currency) can be sent to anywhere in the world.
- A "Company Account" gives you your company its own IBAN in multiple currencies. It allows receiving payments from companies individuals via various payment methods, and allows making cross-border payments (in the destination currency) to over 40 countries.
A report published yesterday in PaymentsJournal says that following the completion of development work and integration with RippleNet, Moneynet "has already begun to receive payment instructions from two other network partners and process these payments in a secure and decentralised manner."
The report has the following quote from Yishay Trif, the CEO of Moneynetint:
“The cooperation signed with Ripple is part of the company’s strategic move to advance into innovative areas of the payments industry and to become a groundbreaking institution in the field. The fact that RippleNet serves as a platform that sets uniform parameters for all its members facilitates the process of interfacing between international financial entities. For Moneynetint, the collaboration is a leap forward in the ability to provide advanced services to its customers, opening additional corridors and opportunities that have not been available or had no reliable nor cheap solution for them in the past and as a result, increasing Moneynetint’ exposure to a wider customer base while minimizing the risks involved...
Once we realised how professional the Ripple team was and supports the process, we decided to choose them. We expect that together we will be able to lead significant development and simplify processes in the area of cross-border money transfers. The processes of interfacing and approval between financial institutions, previously taking months or even years are now significantly reduced to a matter of days to a few weeks."
It also says that "those international financial institutions already connected to the RippleNet payment platform and seeking to benefit from the Moneynetint infrastructure and capabilities will now be able to quickly and easily interface without the need for additional API execution."
The report also contains the following quote from Nadeem Ladki, Director of Account Management at Ripple UK:
“We welcome the collaboration with Moneynetint. Their ability to now facilitate payouts in Israeli New Shekel – in addition to Euros – on behalf of other RippleNet members is another big step in expanding the overall network. By leveraging Ripple’s blockchain technology, Moneynetint will now be able to simplify and reduce the FX conversion rates for their customers, increase the speed of settlement and offer services to new markets that would otherwise have been too difficult or too costly to reach in the past."
Featured Image Courtesy of Moneynetint