Western Union is studying tech from Ripple for cross-border payment, research shows

Tuesday 14 April 2020 04:12 CET | News

In a 2020 American Equity Research done by Credit Suisse, it was confirmed that Western Union has been studying and deliberating on the use of technology from Ripple for cross-border payment, according to News Logical.

Traditional payment systems are seen less efficient for C2B payments due to transaction time and costs. However, cross-border payment technology like Ripple offers solutions to some of the problems of the archaic payment means with its instantaneous transaction and low cost, the research has found.

Asa result, Western Union and some other companies like Transferwise managed to develop innovations and world treasury operations to offer real-time cross-border remittance at low fee, however, even if their payment platforms can be applied across high-volume developed market currencies (G10), challenges remain in lower-volume EM currencies.

For instance, after partnering with Ripple, MoneyGram, another player in the remittances market, witnessed a surge in its valuation and transaction volume. Via the deal, MoneyGram pledged that it would be using Ripple On-Demand liquidity product, which leverages XRP, to complete 10% of transactions between the Mexican and US payment corridor.

Still, while there are pieces of evidence that Western Union is still testing and observing blockchain technology from Ripple, Western Union may be wary of the security lawsuit faced by Ripple, the online publication concluded.

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Keywords: XRP, cross-border payment, remittances, fintech, Western Union, fees, transactions , Ripple, blockchain
Categories: Banking & Fintech
Countries: United States
This article is part of category

Banking & Fintech