Ripple Labs, a San Francisco-based payments firm, has recently announced a partnership with South African fintech company Onafriq to expand remittance payment capabilities in Africa and across its borders with the Gulf Cooperation Council (GCC), the U.K., and Australia. This collaboration aims to open three new blockchain-based payment channels between Onafriq users in Africa and three partner firms, including U.K.-based fintech firm PayAngel, Abu Dhabi-based digital Wallet Pyypl that serves users in the GCC, and Australia-based payments company Zazi Transfer.
The newly established payment channels will allow users to execute low-cost remittance and business payments to recipients in 27 countries across Onafriq’s pan-African network. These channels will utilize Ripple Payments, an XRP-enabled payments technology, to eliminate the lengthy transfer times and high costs associated with traditional remittance payments. According to Ripple’s press release, the implementation of Ripple Payments is expected to bring the benefits of faster and more cost-effective cross-border payments to individuals seeking to send money into Africa from around the globe.
The collaboration between Ripple Labs and Onafriq underscores the increasing demand for innovative and efficient remittance solutions across Africa and its international partners. As the global economy continues to become more interconnected, the need for seamless and cost-effective cross-border payment mechanisms has become increasingly vital.
Aaron Sears, senior vice president of global customer success at Ripple, expressed enthusiasm about the partnership, stating, “Connecting our partners PayAngel, Pyppl, and Zazi Transfer with Onafriq over Ripple Payments will bring the benefits of faster and more cost-effective cross-border payments to individuals seeking to send money into Africa from around the globe.”
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The integration of Ripple’s technology is poised to revolutionize the remittance landscape in Africa, addressing longstanding challenges associated with costly and time-consuming transfer processes. By leveraging the capabilities of blockchain technology and Ripple Payments, individuals and businesses will have access to a more streamlined and efficient means of facilitating cross-border transactions, ultimately contributing to economic growth and financial inclusion across the continent.
In response to the partnership announcement, the digital asset XRP experienced a minor decrease in value, falling 1.46% in the 24 hours leading up to 5:15 p.m. in Hong Kong, to trade at US$0.68. However, despite this minor fluctuation, the overall outlook for Ripple’s technology and its impact on cross-border payments remains promising.
This collaboration signifies Ripple Labs’ commitment to leveraging its innovative payments technology to address the evolving needs of the global remittance market. By partnering with Onafriq and its network of fintech companies, Ripple has positioned itself as a catalyst for positive change in the cross-border payments landscape, particularly within the African continent and its international partners.
As the partnership between Ripple and Onafriq progresses, it is expected to facilitate greater financial inclusion and accessibility to reliable remittance services across Africa and into international markets, fostering economic growth and prosperity for individuals and businesses alike. With a focus on providing efficient, low-cost, and secure cross-border payment solutions, Ripple and its partners are set to drive meaningful transformation within the remittance industry, benefitting communities and economies on a global scale.
In closing, the collaboration between Ripple Labs and Onafriq represents a significant advancement in the realm of cross-border remittance payments. By harnessing the power of blockchain technology and Ripple Payments, this partnership is set to redefine the way individuals and businesses engage in cross-border transactions, ushering in a new era of financial accessibility and efficiency across Africa and its international partners.
