People and businesses increasingly expect everything in their lives to move at the speed of the web. Conditioned by smartphone and apps where nearly anything is attainable at the press of a button, these customers are often left wanting when it comes to their experiences with money and financial service providers.
This is because an aging payments infrastructure designed more than four decades ago leads to expensive transactions that can take days to settle with little visibility or certainty as to their ultimate success. This experience runs contrary to customer expectations for an Internet of Value, where money moves as quickly and seamlessly as information.
Delays, costs and opacity are especially true for international transactions. Not only are payments limited by inherent infrastructure challenges, but they must navigate a patchwork quilt of individual country and provider networks stitched together for cross-border transactions. This network of networks effectively stops and starts a transaction every time it encounters a new country, currency or provider network – adding even more costs and delays.
As a global payments network, RippleNet creates a modern payments experience operating on standardized rules and processes for real time settlement, more affordable costs, and end-to-end transaction visibility. It allows banks to better compete with FinTechs that are siphoning off customers disappointed by traditional transaction banking services.
RippleNet brings together a robust ecosystem of players for the purposes of powering the Internet of Value. This network is generally made up of banks and payment providers that source liquidity and process payments, as well as corporates and FinTechs that use RippleNet to send payments.
For network members, RippleNet offers:
Access: Today, banks and providers overcome a fragmented global payments system by building multiple, custom transaction relationships with individual networks. By joining RippleNet’s single worldwide network of institutions, organizations gain a single point of access to a standardized, decentralized infrastructure for consistency across all global connections.
Certainty: Legacy international payments cannot provide clarity around transaction timing or costs, and many transactions ultimately end in failure. RippleNet’s atomic pass-fail processing ensures greater certainty in delivery, and its bi-directional messaging capability provides unprecedented end-to-end transaction visibility for fees, delivery time and status.
Speed: Disparate networks and rules create friction and bottlenecks that slow down a transaction. RippleNet’s pathfinding capabilities cut through the clutter by identifying optimal routes for transactions that then settle instantly. With RippleNet, banks and providers can reduce transaction times from days to mere seconds.
Savings: Existing payment networks have high processing and liquidity provisioning costs that result in fees as high as $25 or $35 per transaction. RippleNet’s standardized rules and network-wide connectivity significantly lower processing costs. RippleNet also lowers liquidity provisioning costs or can eliminate the need for expensive nostro accounts altogether through the use its digital asset XRP for on-demand liquidity. The end result is a dramatically lower cost of transactions for providers and their customers.
RippleNet solves for the inefficiencies of the world’s payment systems through a single, global network. With RippleNet, banks and payment providers can realize the promise of the Internet of Value, meeting customer expectations for a modern, seamless global payments experience while lowering costs and opening new lines of revenue.