Ripple Grows Market Base With Middle East Expansion
The firm has now partnered with major banks based in the Middle East while RippleNet continues to be adopted by various institutions.
RippleNet Enlists 200 Additional Institutions
Approximately 200 banks have joined the RippleNet platform. This is according to Dilip Rao who heads Ripple’s innovation section. This figure means that a new client joins Ripple after six days on average. RippleNet is a system developed by Ripple to facilitate cross-border payments. The system deploys the firm’s infrastructure to facilitate the payment.
Speaking to the media, Rao stated that at the moment, most customers are based in the Middle East. Three Saudi Arabian banks, two from Kuwait and one each in Bahrain and Oman have joined the platform. Additionally, several banks from the United Arab Emirates have joined Ripple’s system. To facilitate smooth operations, Ripple plans to open an office in Dubai before the end of the year.
Rao added that firms that incorporate Ripple’s systems can play a vital role in helping workers access areas where traditional payment systems are not applicable. He pointed out SWIFT as an example. Rao stated that their technology can be applied in some parts of South Asia where facilities have dropped SWIFT. Banks in this region have set up their own technologies to interface payments as a way of efficiently serving clients.
Rao noted that with Ripple payment solutions, the cost of sending money will be lower compared to normal banking systems. He noted that the high charges for sending money are hurting many workers since fees greatly affect the balances reflected on a worker’s account.
The Ripple official added that the technology will be useful when sending small payments on an international level. The payment solution can provide a platform to have a machine-to-machine transaction that can allow payment of small amounts of money.
Rao pointed out that we need to have systems that permit payment of any amount. Through such platforms, the digital economy gets a base since machines can handle many transactions in a day without human interference. Rao said that machines can conduct about 50 billion transactions in a year in micropayments.
Rao added that the current systems are unable to handle such tiny payments in huge volumes. With such a challenge, the need for setting up new systems has arisen.