The latest Ripple Santander cross-border application is becoming a problem for the fintech industry for the fact that it is making the once upon a time specialist fintechs like TransferWise and co appear archaic, slow, and fund consuming.
Aside from the fact that App makes Santander become the first international bank to launch a cross-border payments system that employed the blockchain innovation, the innovation has many a number of advantages that specialist fintechs do not have.
In a conversation with Financial Time, Banco Santander’s executive chairman, Ana Botín, spoke about the new service saying the service is at present available to customers in Spain, the UK, Brazil, and Poland.
The app, One Pay Fx, according to her, avails customers the opportunity to send money within Europe and receive it the same day or next day, as opposed to what is obtained in other specialist fintechs where cross-border remittance takes several days. By December, the bank executive says the transfer delivery is going to be instant.
The app is so great that it makes the receiver get the actual amount sent without unnecessary charges. The Ripple-powered app has been tested with Santander UK employees, but now, Santander is looking forward to partner small companies who may find the App awesome.
One Pay FX is better than other remittance fintechs available. Some charge exorbitant amount, in the case of Santander, the charges are too low and affordable. The lower cost is killing some companies and making them to eye blockchain innovations for transactions. The payment industry is becoming competitive now that remittance charges are becoming low without a reduction in effectiveness. The App relies on distributed ledger technology fashioned by Ripple and branded as ‘xCurrent’.
During the launch, Ana Botín said the app offers a fast, simple and security conscious way of global remitting.
“From today, customers in the UK can use One Pay to transfer money across Europe and to the US. In Spain, customers can transfer to the UK and US, while customers in Brazil and Poland can transfer to the UK,” Ana said.
“Transfers to Europe can be made on the same day and we are aiming to deliver instant transfers across several markets by the summer.”
Ana recognizes opportunities available in blockchain technology, saying the innovation will help improve services Banco Santander offers its customers with help of Ripple. In addition, she said Santander One Pay FX is the first of many potential applications.