Banco Santander sees great benefits in using RippleNet for its money transfer solution One Pay FX and is planning to expand it to new territories and customer segments.
One Pay FX runs on Ripple
Spanish banking giant Banco Santander is one of the earliest companies to join RippleNet and is also an investor in Ripple. Santander launched One Pay FX, a money transfer solution that leverages RippleNet to settle cross-border transactions, in 2018.
According to One Pay FX Chief Technology Officer Ed Metzger, Santander partnered with Ripple to improve its international payments process. Santander partnered with Ripple to explore how blockchain could make transactions faster, cheaper, and more transparent.
Ripple helped Santander deal with the lack of clarity and transparency in the traditional process. It was always unclear to Santander’s customers how much money the recipient would receive due to the fluctuating exchange rate or fees. On top of that, there was no transparency about when the payment was going to get there. They just knew it would take 3-5 days. Ripple helped solve these issues.
“Whether they are putting down a deposit on a holiday rental or paying a foreign supplier, they see exactly how much will arrive when they’re making the payment and have certainty about when it will get there. Ripple also helps us address the speed issue of international transactions. Some payments on One Pay FX now happen instantly. I made a payment recently from an account I have in Spain to one in the UK and received text alerts about the transaction from both accounts within seconds of one another.”
The Bureau of Consumer Financial Protection (CFPB) also acknowledges Ripple’s benefits
A few weeks ago, the U.S. Bureau of Consumer Financial Protection (CFPB) also acknowledged Ripple’s benefits. In a proposed rule the bureau noted:
“Expanded adoption of SWIFT’s gpi product or Ripple’s suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent.”
This rule was filed in the Zakinov lawsuit to be taken into account as part of Ripple’s defense.
Future plans for One Pay FX
Today, One Pay FX has expanded to 19 countries while half of the bank’s annual international transfers can now be handled by the app. That percentage is set to increase as the service rolls out to more territories and customers.
“We’re looking to expand One Pay FX to new territories and customer segments so more people can benefit from faster, cheaper, and more transparent international payments,” concluded Metzger. “The partnership with Ripple is key because our success so far gives us the confidence to move ahead even faster. It’s not just the technology. Being part of RippleNet has helped us to forge sustainable and scalable relationships with other financial institutions around the world. By offering more customers a better way of sending money abroad, we’re achieving our goal of helping people and companies prosper.”
You can see a video of Metzger’s statement’s here: