“Ripple‘s blockchain platform plans to expand partnerships with banks in Brazil in the international people remittance market by 2020 as demand for instant and cheap solutions in this sector grows rapidly“, according to Reuters.
Luiz Antonio Sacco, Ripple Managing Director, Brazil & South America, told Reuters that “after signing deals with Santander, Bradesco, Rendimento and others, and opening an office in Brazil this year, the Silicon Valley-based company is expected to announce partnerships in the coming months with more institutions, including digital banks.”
The environment is ripe for more partnerships, due to advances in regulation in Brazil.
“With successive advances in Brazilian banking regulation to facilitate financial transactions, including international, opportunities here will grow greatly in the coming years.“
Brazil, a huge market with potential
According to Central Bank data, cross border remittances by individuals between Brazil and other countries from January to November totaled US $ 4.6 billion, an increase of 10% over the same period last year. Most of these transactions are conducted through Swift, a system that integrates banks from different countries, in an expensive process that can take up to a week, a problem that new business arrangements have promised to solve.
Mr. Sacco says its transfer services through Ripple can cost up to 10% of the amounts charged by banks, according to partner reports. Here, the first bank to use Ripple’s technology for international remittances was Santander Brasil, in October last year. Two months later, British-origin fintech Transferwise landed in the country, which quickly became one of its top five global markets.
According to mr. Sacco, Brazil already represents about 30% of the total volume of remittance transactions made through its platform, which is present in more than 45 countries. Ripple’s focus at the moment is to discuss with banks and regulators possibilities of cryptocurrency coexistence with traditional operations to make transactions in the global financial system more efficient.