Current global payments infrastructure does not meet today’s business or consumer needs. When making cross-border payments, businesses must have pre-funded accounts in target currencies – an expensive, slow and resource-consuming undertaking – leaving remitters limited options.
RippleNet and its network of global financial institutions are changing the status quo. RippleNet enables hundreds of financial institutions in 55+ countries to streamline global payments, expand into new markets, and deliver the best payment experience for customers today.
The Novatti Group is taking this opportunity to join Ripple’s global payments network by leveraging RippleNet’s On-Demand Liquidity Service (ODL) and leveraging the digital asset XRP for instant cross-border payments. The digital banking and fintech company, which specializes in delivering unique payment solutions, was recently announced under a contract originally signed in December 2020 and uses RippleNet to make money faster, cheaper and more reliable for its customers.
The partnership will initially focus on transfers between Australia and the Philippines through the country’s largest Filipino remittance service provider, iRemit. The Philippines is the third largest remittance receiving country in Asia after India and China. Despite the pandemic, Filipinos overseas sent home $ 33.19 billion in 2020. However, the time and cost of remittance to the Southeast Asian country reduces the impact of these funds, which are often the primary source of income for Filipino families.
Novatti is expected to process several thousand transactions per month through RippleNet and plans to quickly expand the service to more fintech clients and other countries in Southeast Asia.
With ODL, Novatti and its fintech clients can keep this promise by allowing instant cross-border payments without pre-financing. Before ODL, remittance providers would have to keep pre-funded accounts in the country’s local currency on each side of a transaction.
These accounts tie up capital around the world and increase the cost of every transaction. And even with these easy payment accounts, transactions can take days to complete without showing the status of the payment.
With XRP, a digital means of payment developed for payments, ODL can instantly bridge currencies, eliminating the need for pre-funded accounts. This unlocks capital and reduces operating costs, savings that can be passed on to customers and used more effectively.
If you are a financial institution or bank interested in learning how ODL can enable instant cross-border payments, contact us today.