Ripple and Pyypl team up to offer low-cost cross-border payments to the Philippines

US blockchain technology company Ripple, which is also behind the cryptocurrency XRP (quotation XRP), has joined forces with Pyypl, a Middle Eastern FinTech, to introduce RippleNet's first on-demand liquidity solution for cross-border payments between the Middle East and the Philippines.

Economic and instant funds transfer

The ODL solution allows RippleNet, a network of banks and money services firms using solutions developed by Ripple, to use XRP currency as a bridge between two fiat currencies, allowing them to transfer funds in a cost-effective and instant way between jurisdictions.

This will eliminate the need for expensive pre-funded destination accounts, the two companies said on Tuesday.

The Middle East contains two of the three largest remittance corridors in the world, with the UAE and Saudi Arabia handling a total of $ 78 billion ($ 286,5 billion) in payments in 2020, according to the Bank. world.

The Mena region has also experienced a rapid transition to digital over the past year, making it a ready market for FinTech innovation.

Outgoing personal remittances from the UAE fell by 5% annually - or Dh 8,3 billion - in 2020, according to the UAE Central Bank's annual report.

Transfers through exchange bureaus fell by Dh 18,1 billion, or 13,8 percent, but outgoing remittances through banks increased by Dh 9,8 billion, or 28,8 percent, he said. the regulator.

The technology behind XRP

Ripple uses cryptocurrencies to address the challenges associated with cross-border payments.

Using ODL, financial institutions and small and medium-sized businesses can draw on previously trapped and pre-funded capital to grow their business, the companies said.

Founded in 2012, Ripple's blockchain technology is currently used by hundreds of financial institutions in more than 55 countries.

“We are thrilled to be Ripple's first partner to bring ODL implementation to the Middle East. This allows our users to deliver remittances instantly and economically, ”said Antti Arponen, co-founder and CEO of Pyypl.

"We have also reduced our inefficient use of capital through ODL and look forward to an exciting rollout of its capabilities across the region."

Pyypl, which is licensed by the Abu Dhabi Global Market Financial Services Regulator, started with ODL services in the Philippines.

It plans to expand into new markets and explore further use cases

The XRP digital currency will not be held in the UAE and transactions will not involve UAE dirhams as part of the payment flow, the companies said.

In the Asia-Pacific region, Ripple announced its first ODL corridor to market in Japan in partnership with SBI Remit and acquired a 40% stake in Malaysia's cross-border payment company Tranglo to expand the availability of its ODL service, the companies they said.

The US Securities and Exchange Commission sued Ripple and two of its executives in December for allegedly misleading XRP investors.

The company and its executives, who are also major security holders, have been accused of raising more than $ 1,3 billion through an unregistered and ongoing offering of digital asset securities.