XRP Championed by Blockchain Expert as Future of Cross-Border PaymentsNovember 11, 2023
Recently, Panos Mekras, a well-known blockchain consultant and financial technology expert, emphasized the significance of XRP in transforming cross-border remittance processes. This commentary followed an article by Ripple’s partner Tranglo, which aimed to correct common misunderstandings about remittances and cross-border settlements.
Tranglo, in their article, tackled the prevalent belief that banks are the most cost-effective option for international money transfers. Contrary to this belief, a March 2023 report from the World Bank revealed that banks are actually the most expensive choice, with online remittances via banks averaging a 12.1% fee per transaction, compared to a global average of around 6.24%. Tranglo’s internal research supported these findings, showing that traditional banks and payment gateways typically charge between 3% to 7% in transaction fees. In stark contrast, Tranglo’s users experience an average fee of less than 0.5% for cross-border remittances.
Mekras, responding to Tranglo’s findings, highlighted the role of XRP and blockchain technology in enabling these low transaction fees. He advocated for the adoption of XRP-powered low fees as the benchmark for international settlements and remittances.
On 29 March 2021, Ripple announced that it had invested in Tranglo, a Southeast Asian firm specializing in cross-border payments. This strategic investment marked a key expansion of RippleNet’s On-Demand Liquidity (ODL) service. The company disclosed through a blog post that it had finalized a deal to acquire a 40% stake in Tranglo. Established in 2008 by a Malaysian entrepreneur, Tranglo has made a name for itself in the cross-border payment sector. The purpose of this collaboration was to bolster the efficiency of existing payment corridors, such as those in the Philippines, and to facilitate the introduction of new ODL corridors within Tranglo’s network.
Jacky Lee, the CEO of Tranglo, expressed the company’s commitment to enhancing cross-border transactions. He stated, “Our collaboration with Ripple marks a significant milestone in our goal to improve global financial services. We’re excited to leverage On-Demand Liquidity to expand our reach and continue providing fast, affordable, and secure cross-border payment services.”
Asheesh Birla, the General Manager of RippleNet at Ripple, also commented on the partnership. He emphasized Tranglo’s strong payment infrastructure and customer service, noting their importance in supporting Ripple’s expansion in Southeast Asia. Birla highlighted the shared vision of both companies to revolutionize cross-border transactions using blockchain technology and digital assets.
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