Today Ripple is pleased to announce the partnership with the European digital money transfer service Azimo. The company has launched Ripple’s On-Demand Liquidity (ODL) service as part of its remittance options to the Philippines, and plans to expand the use of ODL to other corridors this year.
ODL uses the XRP for digital assets to bridge two currencies within seconds and ensure that payments on both sides of a transaction are quickly sent and received in local currency. Additionally, ODL has the potential to reduce liquidity costs by up to 60% compared to traditional banking solutions, guaranteeing some of the most competitive exchange rates available.
“We have long been interested in the potential of digital assets like XRP to improve cross-border payments for customers,” said Richard Ambrose, CEO of Azimo. “Ripple’s ODL solution has significantly reduced the cost and delivery time for cross-border transfers, and our customers are seeing the benefits.”
The Azimo partnership is an important step in solving the challenges of slow and expensive cross-border payments, especially remittance flows to low and middle income countries where fast and inexpensive transactions are required. According to the World Bank, the Philippines is the fourth largest recipient of remittances from migrant workers, with an average remittance flow of $ 34 billion in 2018. Through this partnership, Azimo is seizing the opportunity to offer remitters a better solution for transferring funds to the region.
For Azimo’s customers and the millions of recipients in the Philippines, time and expense are an important part of everyday life. However, these elements are often at odds in today’s global payments because of the complex challenges involved in transferring funds between currencies. RippleNet’s ODL service is changing the status quo by allowing financial institutions to process cross-border payments at unprecedented speed.
Dozens of RippleNet customers are using ODL for faster cross-border payments, including Viamericas, FlashFX and goLance. The service is currently available in corridors such as USD-MXN, USD-PHP, AUD-USD and PHP, as well as from EUR-USD. Further corridors are planned for 2020 in APAC, EMEA and LATAM.
In cooperation with more than 300 customers of Azimo and Ripple worldwide, family members can quickly send money home to all corners of the world. Taken together, the benefits of speed, cost, and security enable those who use ODL to compete more effectively and provide their customers with a faster, more reliable way to send money home.
If you are a financial institution interested in learning how RippleNet’s ODL can help better serve your customers, contact us.