Ripple has been successful at using the technology that supports the XRP token to boost international payments, a strategy that it's trying to expand through upgrading its payments platform, partnerships and digital asset projects.
In November, the firm recast its RippleNet platform as Ripple Payments. This system supports blockchain-powered international business payments without requiring users to have expertise in digital currencies or transaction processing.
Ripple is trying to make itself more competitive in the cross-border B2B payments market. B2B payments have become a major battleground, with
The newly-dubbed Ripple Payments provides access to Ripple's global network of more than 70 crypto and traditional payment markets. It also includes a built-in compliance system that uses more than 30 licenses, such as money transmitter licenses in the U.S. and a recent license form the
Ripple's licenses are key to reaching a wider range of users, according to Brendan Berry, head of payments products at Ripple.
"Previously, the impact that our payments solution provided was limited to the types of customers we could serve, which were primarily licensed financial institutions," Berry said. "With the licensed solution, we're able to serve a broader base of corporates who want someone to manage their payments flows end to end."
Ripple Payments has made new integrations with the XRP Ledger's native decentralized exchange, with a simpler user interface.
"This is geared toward providing the speedy processing and cross-border availability of a blockchain-enabled payment system without requiring one to have any expertise in the underlying technology," he said.
Ripple anticipates that Ripple Payments will be used to support digital invoices for imports, exports and international supply-chain payments. Other uses include payroll processing for staff or contractors.
"This will greatly enhance our ability to offer optionality, speed, ease of use, and compliance among a number of cross-border payments needs," Berry said.
Ripple Payments followed several other deployments. In early November, Ripple partnered with African fintech Onafriq to support digital asset-enabled cross-border payments between Africa and the
The total transaction value in Africa's digital payments market is on pace to reach about $146 billion in 2023 and $265 billion by 2027, according to
"Sub-Saharan Africa, in particular, has demonstrated strong market dynamics for crypto adoption, with consumers using digital assets for trading and for protection against fiat inflation," Berry said.
Ripple also recently entered a partnership with the Web3 financial platform provider
These moves stack on top of products launched earlier in 2023. In June, Ripple released its
"Cross-border payments are the primary use case for cryptocurrencies, and of those, the stablecoins have a natural advantage because they do not introduce Bitcoin-level value fluctuations," said Aaron McPherson, principal AFM Consulting. XRP's value does fluctuate, but under sufficiently fast timescales that may not be an issue, McPherson said, noting that the CBDC Platform probably makes Ripple flexible enough to work with any stablecoin. "[Ripple] clearly sees the opportunity, they want to be the exchange," McPherson said.
One challenge Ripple could have is the persistent question of whether XRP is an investment asset or a medium of exchange, McPherson said, referring to Ripple's
"Ripple's prospects for working with CBDC pilots are probably hurt by the ongoing SEC case, because central banks will not want the legal uncertainty," McPherson said. "Hopefully, that is resolved soon so that things can move forward."
