Crypto firm Ripple partners with Latin American Bank Travelex to offer payment services in Brazil. Ripple would be using its on-demand liquidity service to enable cross-border payments in Brazil. These transactions will be instant and will make life so much easier for citizens who send or receive money from friends and family living in other countries. The transaction cost will also be very small as compared to what banks charge for cross-border payments.
Ripple is changing the payment service market in Brazil with Travelex
The requirements to use Ripple’s service are very few making it easier for Brazilians to use it. There is also a partnership with Travelex, which means citizens can just walk into the bank to use the service. Ripple’s CEO is quite optimistic about offering its service in Brazil as it is an important market to capture the Latin American business. The country has always been open to innovation, making it the perfect place to start cross-border payment services.
To further their reach, Ripple has partnered up with Travelex so they can offer great user access and experience.
Brazil and many other Latin American countries see a lot of their citizens go to different countries and support their families. Often times the money they send or receive isn’t very high, and when you consider the huge settlement fees banks charge and the time associated, it becomes a burden for them. Ripple changes that with instant and cheap cross-border payments.
Blockchain and the remittance market
Banks primarily use the SWIFT network when making cross-border payments. Even though it works well, many banks are excluded from the network, and there is also quite a lot of commission fees involved in the transaction. However, blockchain can easily solve this and make cross-border transactions as simple as paying for coffee at your nearby store.
Ripple is doing the exact same thing, and its partnership with banks makes the whole process a lot better. Market data shows that the remittance market could reach $1.23 trillion annually by 2030. And a majority of it could easily be captured by blockchain tech by then.
What are your thoughts as Ripple partners with Travelex to offer cross-border payment services in Brazil? And do you think blockchain can capture 70% of the remittance market by 2030? Let us know in the comments below. And, if you found our content informative, share it with your friends.