XRP Lowers Remittance Costs by 75%, Says Cross-Border Payments Company SendFriend
A consumer payments platform backed by Ripple says its XRP-powered payment service is lowering transaction costs by as much as 75%.
At the recent UBRI Connect Conference in Berkeley, SendFriend CEO David Lighton said Ripple’s On-Demand Liquidity (ODL) is giving the company a new way to lower costs for its customers.
“What’s fabulous about blockchain and what Ripple’s product brings to the table is that you remove the need for that working capital. We can now source liquidity, on-demand and depress those transaction costs by up to 75%.
Our goal is to pass on these savings to our customers. What that means is companies like Western Union can charge up to 10% to service a payment — we can get it done for 2%.”
Ripple’s liquidity product is designed to give its network of banks and financial institutions a way to move local currencies across borders in a matter of seconds by using XRP as a bridge.
SendFriend began using ODL in June, giving Filipino workers in the US a cost-effective way of sending money back home.
The company says its complete list of backers includes Barclays, Techstars, Ripple, MIT Media Lab, Mahindra Finance and the MasterCard Foundation.