Ripple Discusses How European Companies are Expanding Using Blockchain
In a recent Ripple Insights article, the company discussed how countries in Europe are going global with blockchain technology.
At the recent Ripple Regionals event in London, there was a lot of discussion about the impact of blockchain technology on the businesses in Europe.
Three European business leaders talked about how they could successfully grow in new and exciting markets such as Mexico and the Philippines as well. Each of these had overcome the challenges of dealing with new banking partners and exotic currencies with the help of blockchain. Blockchain made cross-border payments cheaper, faster and much more transparent for customers around the world.
The first of the three key learnings was developing growth opportunities. Quoting the example of Euro Exim Bank, which facilitates trade finance across 80 countries where liquidity is hard to get since they are home to exotic currencies, the article said:
“The company’s biggest potential growth markets are in Africa and the Eastern Asia. However, many clients in these regions do not have easy access to euros or dollars, so make payments in their local currency. Euro Exim Bank needed an alternative to the slow and expensive existing cross-border payment networks.”
Talking about how xRapid helped, the article said:
“Within just three months of first partnering with Ripple, the bank was using xRapid to provide clients with on-demand liquidity for international transactions, instead of needing multiple pre-funded currency accounts around the world.”
Next key learning was accessing the inaccessible. Talking about the problem Mercury FX faced, the article said:
“Mercury FX aims to make money move faster around the world for clients at a lower cost. To overcome the high costs and long turnaround times of the existing SWIFT network, the company turned to Ripple’s innovative technology.”
They trialed xRapid by sending a donation to an orphanage in Mexico. The trial went so successful that the company soon started facilitating payment from a business based in the UK which imported Mexican food. Talking about the change brought forth by xRapid, the article said:
“Mexico had not been a target market for Mercury FX because of the high costs and time-consuming nature of making international payments there. Now Ripple has opened Constance’s mind to other potentially lucrative corridors. Starting with plans to use xRapid in the Philippines, the company is completely rethinking its acquisition strategy and becoming a competitive leader in a range of new markets.”
Moving on to the final key learning—finding more value. Back when it was founded in 2012, TransferGo aimed to provide same-day or next-day international settlements for migrant workers. As of now, that is a very slow process. As the article puts it:
“In highly competitive remittances market, customers are looking for the fastest and most cost-effective providers. To overcome one of its biggest challenges – constantly spending time and money integrating with new banking partners – the company decided use RippleNet.”
Talking about the benefits for the customers, the article said:
“The benefits for customers are more than just speed. Feedback from people carrying out real-time transactions to India suggests they bring peace-of-mind, as customers are confident that the money will arrive. Ripple is giving TransferGo a real competitive edge in India, which is the largest global cross-border remittance market. The rest of the world will follow.”
As Mercury FX’s Alastair Constance put it:
“I see us becoming truly global citizens in the future and money therefore needs to be a truly global commodity.”
The idea resonates with Ripple’s mission of allowing value to move anywhere across the globe as freely as information does. This would help businesses in Europe and across the globe to expand their reach internationally.