Ripple Discusses RippleNet’s Benefits in Japan
In a recent article on Ripple Insights, the real-time gross settlement solutions company’s blog, Ripple discussed how RippleNet is putting the power in the hands of Japanese bankers and traders.
The company starts off by discussing how people struggle to provide for their families—even moving out of their own nations for jobs available in other countries that pay them better. In Japan alone, there were 1.28 million foreigners working in 2017, many of which were the primary source of income for their family members who were living back in their countries.
It is then explained in the article how difficult, costly, and time-consuming it is for these workers to send money back home. For many workers, it takes multiple trips to banks and up to 12 extra hours of work (to afford to pay the transfer fee) just to transfer the money. The existing international payments infrastructure is archaic and hence needs to be replaced with a modern FinTech product which is efficient in all regards.
Talking about RippleNet’s adoption in Japan, the company said:
“A number of pioneering banks and providers are using RippleNet’s global payments network to give workers an instant, affordable and transparent way to send needed cash to their families. One example is the collaboration between SBI Remit and Siam Commercial Bank (SCB) that leverages RippleNet to power real-time remittance payments for those Thai workers living in Japan.”
This partnership enables workers to open their own SBI Remit accounts online and then link it to an SCB account at home. Upon receiving an SBI card, they can visit ATMs anytime to make deposits which are posted to their SCB accounts in real-time. Since RippleNet offers lower processing costs, workers can send home more money.
The company then talks about the messenger API for the product:
“RippleNet’s messenger API also enables SBI Remit and SCB to exchange information on customers, fees, rates, and expected delivery time for unprecedented visibility into a transaction. This allows workers and their families to know costs and final delivery amount and times before money is ever sent.”
Apart from the benefits that customers get—including but not limited to the benefits of cost, speed, and certainty—the product has a lot in store for the banks as well. Banks can add new lines of revenue and capabilities while increasing customer loyalty.
The company then talks about the benefits SBI derived from the partnership:
“SBI was able to complete Ripple implementation within 3 months and is currently the largest money transfer provider in Japan with 10 billion JPY in cumulative monthly payment volume. SBI is building on the success of its service and the popularity of instant remittances by expanding its work with Ripple through the jointly launched Japanese Bank Consortium.”
Further explaining the company’s stance in Japan, it says:
“Comprised of 61-member banks and covering nearly 80% of banking assets in Japan, the Consortium recently unveiled a first-of-its-kind mobile app powered by RippleNet called MoneyTap. This app allows customers of consortium bank members to settle domestic transactions instantly.”
Be it domestic transfers or international remittances, the business implications of the use of RippleNet are enormous for providers like SCB, SBI, and the Japanese Bank Consortium members. The technology is also changing the lives of the millions of workers who provide for their families back home by working in Japan.
The families which earlier had problems due to the lack of a communication mechanism within traditional wire transfers and remittance services now have a better alternative. Now they know when the payment arrives as well as the amount finally delivered to them which is really important when they pay rents and buy groceries using this money.