NOTE: Ripple’ same day increase was over 10% recently due to their partnering with American Express.
Instant blockchain-based based payments have been instigated by American Express. They are using Ripple, a fintech startup, to help U.S. commercial customers pay funds to U.K.-based businesses that bank with Santander U.K., American Express and Ripple reported.
American Express’ FX International Payments or FXIP business partnered with Ripple to provide trackable non-card payments from the United States to Britain. Some customers were already using the service and the opportunity is now extending into the future.
American Express and Ripple’s collaboration marks one of the first time uses of blockchain, or a shared database of transactions run by a network of computers on the Internet, is a system underpinning bitcoin.
There are hopes from financial firms that the emerging technology will reduce the complexity and cost of processes like securities settlement and international payments. However, it is still being said that the use of this technology is several years in the future.
“American Express has a long history of integrating new technologies,” said American Express’s chief information officer Marc Gordon, in a statement. “This collaboration with Ripple and Santander represents the next step forward on our blockchain journey, evolving the way we move money around the world.”
Ripple is based in San Francisco and their main job is blockchain-based cross-border payments. They work with many big banks and are backed by Standard Chartered, SBI Holdings, Accenture, and several more.
Why Blockchain Changes Everything
Blockchain is a powerful tool that is taking business by storm. From airplane manufacturing, to insurance, or tracking shipment histories, blockchain is already transforming business.
Ripple is in a legal battle with its rival blockchain startup R3 Holdco. They are battling over an options contract to acquire Ripple’s digital currency, XRP. The value on XRP has increased by over 30 times, just like other cryptocurrencies are increasing.
“Transfers that used to take days will be completed in real time, allowing money to move as fast as business today,” said Ripple CEO Brad Garlinghouse in a statement.