61 Banks Adopt Ripple Powered App in Japan
As soon as you hear the words “banks adopt app to speed up transactions”, you can’t help but say, “of course it’s Ripple”. Ripple has been absolutely killing it this year. Among the companies that have announced partnerships with Ripple, you will find big names like Cambridge Global Payments (CambridgeFx), the international payment processing company, as well as banks – Brazil’s Itaú Unibanco and India’s IndusInd, in addition to money remittance companies Zip Remit from Canada, Beetech from Brazil and InstaReM from Singapore, plus payment provider Fleetcor (owner of CambridgeFx), South Korea’s Woori Bank, and Bitit, a French cryptocurrency exchange. And this is only last month. Rumors have also arisen of a proposed partnership with Porsche and Western Union. All of these companies are looking to adopt Ripple’s xRapid liquidity promotion technology and other platforms to enable real-time international payments. The price of XRP, Ripple’s token, has also been positively affected by news of these partnerships. It reached $1.21 and $1.02 on February 18 and March 2 respectively, practically the highest it’s been since the Everest heights of January, particularly January 7, when it maxed out at $3.40. Granted, still a far cry, and some of the price spikes were caused by the disputed Coinbase listing rumors.
Even so, the big news is only now getting out. A Japanese consortium of 61 banks will be adopting a new payment app co-developed with Ripple, whose main purpose will be to settle transactions instantly between the members of the consortium. The move may very well revolutionize domestic payments in Japan., considering the fact that the banks involved account for 80% of all banking assets in the country. So far, payments have been limited to weekdays during office hours, but with the new app, they will be available 24/7. The app is called “Money Tap”, and it is scheduled to go live in the fall – initially with only three banks, Suruga Bank, SBI Net Sumishin Bank, and Resona Bank, with all other banks following soon after. To use the app, individual customers will have to register with a bank account and additional information, including a phone number and a QR code. The banking consortium which will be utilizing the app is spearheaded by SBI Ripple Asia, a joint venture between SBI Group (the parent company of SBI Net Sumishin Bank) and Ripple.
In a recent interview with Fortune’s Aaron Pressman, Ripple founder Chris Larsen, explained how Ripple wants to enhance the global payments system. In simple terms, Ripple dreams of a world where money and value move across networks as easily as information does. Since you never stop and ask somebody what email provider they’re using, you shouldn’t have to ask them which payment method they prefer, either. The transfer of funds should be instant whether they are using PayPal, Alipay, or a simple bank account anywhere in the world. Facilitating cooperation between banks in one country – which are all using the same currency – is the first step before applying the same principle on a global scale.