The continuing evolution of blockchain has reached a new level in Australia with San Francisco-based Ripple a provider of leading blockchain solution for global payments, launching its latest On-Demand Liquidity (ODL) product for global payment with Sydney-based payments platform Flash Payments.
The expansion of payments solution to Australia through Flash Payments will initially cover payments to the Philippines, with other destinations to be rolled out over time. The Filipinos are the 7th largest migrant group in Australia while the Philippine’s economy is strongly reliant on inflow remittances. International remittances play a pivotal role, contributing 10.5% to overall GDP. The market is completely reliant on the migrated population spread worldwide and remittances made by them.
“We are deploying Ripple’s new generation product, which in essence allows consumers to experience the power of blockchain as part of an international money transfer service, which vastly reduces the time the money takes to go from A to B as well as inexistent transaction costs,” said Mr Nicolas Steiger Chief Enabling Officer of Flash Payments, “There is no doubt that Ripple’s solution is the key to the future of cross-border payments as it provides on-demand liquidity using a digital asset to reduce the reliance on pre-funding at the destination for Flash Payments.”
Ripple’s On-Demand Liquidity product leverages the digital asset XRP as a real-time bridge between the sending and receiving currencies. XRP remains the most efficient digital asset for settlement with transaction fees at just a few cents, compared with other digital asset fees of about $30 per transaction.
“Flash Payments has long been at the forefront of leveraging blockchain technology to improve money transfers. As one of the first customers to pilot our ODL product and a like-minded mission to improve cross-border payments, they were a natural fit to partner with to open a new corridor,” said Marcus Treacher, SVP of Customer Success at Ripple. “We’re excited to be furthering our partnership with Flash Payments , and to extend our On-Demand Liquidity product to Australia.”
In addition, the solution provides transfers over just a few seconds, compared with other digital platforms that transact in timeframes of between 15 minutes and one hour.
Ripple has become a major force across the global financial markets landscape, establishing inroads to institutional finance and working closely with regulators while cultivating products in the blockchain sphere.
RippleNet, Ripple’s global network of banks and payment providers connects more than 300 banks and financial institutions worldwide to enable faster, lower-cost payments around the world.
Ripple recently announced a strategic partnership and $50 million investment in MoneyGram, one of the world’s largest money transfer companies. MoneyGram is also using Ripple’s On-Demand Liquidity solution.
On-Demand Liquidity allows MoneyGram and Flash Payments to improve settlements on their cross-border payments, while giving Ripple an entry into well-established payment channels.
Mr Steiger said “We are delighted to expand our Ripple offering and be able to reach new markets and currencies. Officially joining RippleNet will allow our customers to experience what revolutionising international cross-border remittances through increased speed of settlement and 0 transaction fees”.
Flash Payments was the first in Australia to use blockchain technology to facilitate international money transfers and is the only domestic digital currency business to hold an (AFSL) Australian Financial Services License from Australian Securities and Investments Commission (ASIC) licence.
The Flash Payments product offering caters to any Australian who seeks out a cost-effective and efficient alternative to sending money overseas. The core of our business is providing a quality service to migrants, expats, high net worth individuals, investors and businesses.
Mr Steiger concluded “Flash Payments is excited to be part of the evolution in international payments processing through blockchain and we look forward to expanding and product and geographic platform using Ripple”.