Ripple has made significant strides in the remittance market with its recent strategic partnership with Onafriq, one of the world’s largest remittance services providers. Based in Johannesburg, Onafriq operates in 40 countries across Africa and boasts 400 million mobile wallets and 200 million bank accounts. With offices in the US, UK, and China, Onafriq is a major player in the global remittance industry.
The partnership between Ripple and Onafriq aims to create a blockchain-based remittance corridor between Africa and key markets such as the UK, the Gulf Region, and Australia. This collaboration includes other companies in the targeted countries, such as PayAngel in the UK, Pyypl in the Gulf Cooperation Council, and Zazi Transfer in Australia. The announcement of this partnership was made at Ripple’s Annual Ripple Swell Event held in Dubai and was attended by Ripple’s CEO Brad Garlinghouse and President Monica Long.
Through this partnership, Onafriq will utilize Ripple Payments, a crypto-enabled payments technology, to open up three new payments corridors between Africa and the rest of the world. This initiative is expected to make cross-border funds transfer cheaper and more efficient, providing the African continent with access to a first-world remittance corridor. For Ripple, the partnership with Onafriq presents an opportunity to expand its customer base in Africa, particularly as Onafriq covers 90% of the continent’s foreign exchange market.
The alliance between Ripple and Onafriq is a testament to the increasing influence of blockchain firms in the remittance market, despite the ongoing legal challenges faced by Ripple, including a lawsuit filed by the US Securities and Exchange Commission (SEC) in December 2023. However, the lawsuit has also provided validation for Ripple, particularly following a summary judgment announced by New York District Court Judge Analissa Torres in June.
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The partnership between Ripple and Onafriq signifies a growing trend of collaboration between blockchain technology and established remittance services providers. By leveraging the capabilities of blockchain, these partnerships aim to address issues related to the speed, cost, and transparency of cross-border payments, ultimately benefiting both the service providers and their customers.
In addition to the operational benefits, this partnership also highlights the potential for blockchain technology to drive financial inclusion and economic development in regions like Africa. With the ability to connect millions of mobile wallets and bank accounts, blockchain-based remittance corridors have the potential to empower individuals and businesses by providing them with access to secure, low-cost, and efficient cross-border payment solutions.
Moreover, the strategic partnership between Ripple and Onafriq reflects a broader trend of collaboration between fintech firms and traditional financial institutions, signaling a shift towards a more integrated and inclusive global financial ecosystem. As blockchain technology continues to gain acceptance and adoption, partnerships like this one are likely to play a vital role in shaping the future of cross-border payments and remittance services.
Overall, the partnership between Ripple and Onafriq represents an important step towards advancing the adoption of blockchain technology in the remittance industry and driving positive change in the global financial landscape. By leveraging the unique strengths of both companies, this collaboration has the potential to deliver tangible benefits to individuals and businesses in Africa and beyond, paving the way for a more efficient, transparent, and inclusive cross-border payments ecosystem.
