RippleNet Member SendFriend Seeing Massive Savings in Remittance Fees by Using XRP
On-Demand Liquidity (ODL), Ripple’s XRP payment solution used by “more than two dozen” of the firm’s customers, reportedly helps save up to 80% in remittance fees, according to money transfer firm SendFriend.
Ripple revealed David Lighton, co-founder and CEO of SendFriend, touted ODL as a solution that helps its own customers save while speaking at a conference this week. The CEO explained that Ripple’s XRP solution removed the need for businesses to pre-fund their accounts in destination currencies, removing the need for a large amount of working capital.
The company’s post reads:
ODL enables RippleNet customers to use the digital asset XRP to bridge two currencies in three seconds, ensuring payments are instantly sent and received in local currency on either side of the transaction.
SendFriend is reportedly able to leverage the solution to cut transaction costs by up to 75%, and Lighton added that it plans to pass on the savings to its customers. He compared his firm’s savings to those of other companies, claiming it can charge 2% for a service instead of 10%.
The firm started using Ripple’s XRP solution earlier this year, with its CEO noting that there are four big markets in the world for remittances: India, China, Mexico, and the Philippines, where SendFriend is based. Per Lighton, Philippine regulators “understand that there is a potential to help financial inclusion” with digital assets.
According to a Ripple progress report from last month, RippleNet now has 300 customers, 24 of which are using XRP-powered xRapid, the ODL solution. Its customers include MoneyGram, goLance, Viamericas, FlashFX, and Interbank Peru. Interestingly for fans of XRP, the cryptocurrency that powers ODL, transactions using the solution have surged 7x from the end of the first quarter of 2019 to the end of October 2019.