Ripple, a leading blockchain payments firm, has recently entered the Indian market, making it one of its most ambitious business moves to date. Over the past few years, India has seen a growing number of established banks adopting the cross-border payment solution being offered by Ripple. By doing so, these banks are now able to improve their remittance services, making them faster and cheaper.
Sending payments from one country to another using the current banking system usually takes several days. This is further compounded by the high transaction fees associated with it. The RippleNet platform developed by Ripple Labs aims to address both of these problems. The company allows banks to access its system, which enables them to send money at a very low fraction of the cost and within a few seconds.
This is achieved because RippleNet avoids the middlemen or central banks present in the traditional payment network. In India, some of the banks that have started using RippleNet to process remittances include Axis Bank, Yes Bank, Kotak Mahindra Bank, and IndusInd Bank.
By adopting RippleNet, these banking firms are making a strategically sound decision that will benefit both themselves and their customers. Ripple, on the other hand, benefits from its growing list of partners in India.
India is an essential market for Ripple, given it is currently the most populous nation globally, with 1.4 billion inhabitants. The number of people in the country demonstrates the robustness of India’s payment ecosystem, which is growing rapidly as one of the largest regions receiving remittances worldwide.
Ripple aims to harness the multi-billion dollar remittance ecosystem in India and beyond through its partner Trianglo, further proving the effectiveness of both the RippleNet and the On-Demand Liquidity (ODL) product. With the support of home-grown and established banks, Ripple is on track to capture more Asian markets by making its remittance services faster, cheaper and more accessible.
Ripple is amongst the pioneering payment service providers in the digital currency ecosystem and is arguably one of the biggest. Despite facing roadblocks in the United States as a result of its legal tussle with the Securities and Exchange Commission (SEC), the company has pitched its tents in high-prospect emerging markets in Asia to do business with.
Ripple’s entry into India marks a mutual collaboration that will benefit all parties involved. It will strengthen India’s payment ecosystem and allow Ripple to capture a share of the enormous remittance market. By providing the cost savings and faster transaction times that Ripple offers, more partner banks in India and across Asia are likely to join the RippleNet platform in the near future.