Ripple, an American technology company developed the Ripple Payment protocol, a blockchain technology built on the distributed open source internet protocol. The company’s main intention is to develop a cheaper and effective way to facilitate cross border payments with their real time remittance and settlement system. They’ve launched three primary products, namely xRapid, xCurrent and xVia. They have also developed their own cryptocurrency XRP.
xRapid is an enterprise cross-border payment settlement solution.
xCurrent is an enterprise solution that uses xRapid to communicate with banks to confirm payment details has the ability to facilitate end-to-end tracking.
xVia is used to facilitate functions of xRapid and xCurrent via standard interface.
xRapid, is an enterprise solution developed by Ripple for payment providers and financial institutions to minimize their liquidity costs and transferring the funds efficiently without any allocation of pre-funded local currency.
This dramatically reduces the capital requirements for liquidity. They are able to facilitate the cross-border payment solution with the help of their digital asset, XRP.
XRP is a digital asset built by Ripple specifically for enterprise use to provide liquidity for cross-border payments. It is a native token of the Ripple ecosystem. XRP is also significantly faster in payment settlements and more scalable than its peers like Ethereum and Bitcoin.
The payment process involves 4 critical steps in order to facilitate cross border payments:
- Entering the amount
- After the amount is entered, its converted from local currency to XRP (for example- USD to XRP)
- Then, the XRP is converted into foreign currency (for example- XRP to GBP)
- And then, the amount is remitted in GBP
xRapid Partners and Customers
Ripple has formed many partnerships with different banks and institutions in different continents. Since its inception, Ripple has been backed by many big names and banks in the financial sector.
They’ve partnered up with the Japan’s SBI, American Express, Standard Chartered, Yes Bank, Axis Bank, Australia and New Zealand Banking Group (ANZ) etc.