During the keynote session on the second day of Swell 2018 conference, Ripple unveiled its discoveries of its first Blockchain in Payments Report that revealed the massive adoption of blockchain-based international settlements reaching critical numbers this year. So far, foreign as well as local organization and firms are already showing interest in incorporating virtual assets into payment flows.
Chief Market Strategist of Ripple, Cory Johnson, while speaking at the inception of the session said that,
“There is a lot of money on the line when it comes to the adoption of blockchain-based cross-border settlements.”
Information from BCG, better known as The Boston Consulting Group, estimates the size in volume of the entire global market for international settlements at about 27 trillion US dollars.
According to the findings, another 20 trillion US dollars in growth could be up for the taking between 2018 and 2026 excluding the global remittances predicted recently by World Bank that is expected to reach about 642 billion US dollars this year.
“The world today is used to getting things done, right now, on-demand. The world is not waiting any longer for anything.” This is according to Johnson’s submissions that highlighted the changing market dynamics in the world. He proceeded by saying,
“When we look at blockchain technology and the solutions it is availing and offering in cross-border payments, we have an opportunity to address their needs.”
And true to Johnson’s submissions, blockchain technology, and virtual assets do offer a way in modernizing today’s cross-border settlement rails by making the transfer of money internationally easy, reliable, fast, and transparent as it is to move information.
Is the Zero Charge Real-Time Transfer Idea Practical?
Taking center stage at the second day of the Swell 2018 conference, Daumantas Dvilinskas, the CEO of TransferGo not only went into detail to show how his company was delivering its promises of making global RTGS a reality.
He also took the opportunity to share with the world the inception of a new free cross-border settlement service (of course, powered by Ripple again) for clients anywhere in the world. The new product is known as TransferGo FREE.
.@TransferGo’s @daumis2475 revealed that the company had reduced costs by 90% in some regions and settlement time to seconds to create a better service for their customers. #SwellbyRipple https://t.co/ozNbPgXb0P
— Ripple (@Ripple) October 2, 2018
But the question begs, is it possible to make international settlements completely free? What will have to be done to avail the mid-market zero fees? This was the rhetorical question TransferGo CEO Daumantas Dvilinskas asked the crowd at the Swell conference hosted by Ripple. This is a rhetorical question because TransferGo has now launched TransferGo FREE that offers exactly that.
Is This a Situation of the Deal Being to Good to be True?
No, it is not. Zero charges cross-border money transfer is nothing new. Regularly, zero charges are made available by firms profiting from foreign currency spreads rather than outright fees.
In the situation of Ripple-powered TransferGo, the company might be aiming higher with the intention to offer a 100 percent free, instant real-time money settlement service to its customers.
The idea is to allow entities to send money to one another and from anywhere in the world without the hustle of thinking about costs and fees.
]C3|Nik, a reputable research company, turned to Twitter and said the following:
When a company saves 90% in cost, what do the competitors think?
More importantly, what will the stakeholders of the competing companies demand?
Think about that incentive structure and you get an idea of what will probably happen in the remittance market.#FinTech #Ripple
— C3|Nik (@C3_Nik) October 2, 2018
TransferGo CEO, Dvilinskas, sees this as the right way to go for the cross-border money transfer industry that is currently witnessing an ongoing shift in consumer behavior. For TransferGo clients, they have started transferring smaller amounts of money around the world regularly.
Although still being a small fish in the big pond of international payments, TransferGo is defiantly giving giants like Western Union, who has over 150 million active customers and transfers billion every year, a run for their money.
TransferGo, who adopted Ripple technology in the middle of the year, currently has only 700,000 users in 47 destinations globally. Its annual turnover accumulates to 1.5 million US dollars worldwide.
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