Speaking at the recent FinTech Ideas Festival 2019, Brad Garlinghouse, CEO of Ripple has spoken on the huge success that Ripple’s platform has had with cross-border payment platforms and how it is outperforming popular platforms such as Venmo and PayPal.
Ripple’s flagship products (xRapid and xCurrent) have grown to be one of the most successful use cases of blockchain technology in the past couple of years since the hypes began. The hypes are plentiful, but they are also founded, and Ripple is one of the few companies proving that.
Sitting on a panel that included the likes of Daniel Schulman, current CEO of Paypal, Garlinghouse said Ripple’s payment platform which has facilitated the transfer of thousands of millions of dollars, offers much more than popular traditional systems like Paypal, VISA, and even SWIFT which connects thousands of banks across the world and has been popular since the 1970s.
Recently, research from DataLight showed that many financial institutions and individuals were using cryptocurrencies such as Bitcoin to make huge transfers rather than using common mediums like MasterCard and Visa. This thought was also echoed by Garlinghouse who admitted that he was a PayPal customer as well as Venmo’s and has seen that the platforms were lacking in a number of ways.
“We have payment networks that are not interoperable,” he said.
“I’m a PayPal customer, I’m a Venmo customer, the lack of interoperability has manifested even within that network. When Ripple thinks about the future, we’re thinking about how to create interoperable networks in the same way that the birth of the internet of information interoperable networks of information.”
Why Ripple’s Platform is becoming a Favorite?
Ripple’s xRapid has stolen more than 100 clients from under SWIFT’s cover despite the SWIFT CEO’s claims that Ripple is not a significant competitor. xRapid facilitates cross-border payments of billions of dollars within seconds and at a very inexpensive at cost at that.
Transfers of this magnitude require liquidity which consequently requires extra cash to offer a liquid solution for the transfer. However, by using XRP as a liquid solution instead, financial institutions can save millions and time too. Ripple’s report concerning xRapid explains more about how xRapid saves cost for clients:
For payments in the critical remittance corridor between the U.S. and Mexico, financial institutions using xRapid saw a savings of 40-70 percent compared to what they normally pay foreign exchange brokers.
And as for blockchain not being suitable for implementations on a global scale and having no use-case, Garlinghouse was perfect in his response, if Ripple’s success with xRapid on a global scale is not enough proof of a perfect implementation of the blockchain, then sceptics don’t know what has hit them.