Today, Western Union, a leading cross-border payment firm, announced it reached a partnership agreement with Amazon, giving international shoppers the advantage to pay in person and in their local currency when they intend purchasing online.
Now, Western Union’s money remittance platform will introduce a new payment option for cross-border customers shopping on Amazon.com.
The new corridor gives customers in select countries an avenue to shop on Amazon via the Western Union agent network.
Hikmet Ersek, President and CEO of Western Union, who spoke on the development said: “There are people in the world who want greater access to Amazon’s huge product selection but paying for those purchases has been a real obstacle for many customers”.
“We’re leveraging our money movement platform to make it easier to shop global and pay local. By facilitating the complex foreign exchange and settlement process, we’re opening up more consumer choices and access to online shopping for tens of millions of potential new Amazon customers.”
Ripple (XRP) Does It Better
While the intent of Amazon is to expand it customer access and close the payments gap, the opportunity available in RIppleNet, a network depended on by big banks across the globe, cannot be overemphasized.
According to Forrester Research analysis, in 2022, cross-border shopping will account for 20% of e-commerce and the sales is expected to reach $630 billion.
One major challenge here is the lack of seamless payment option for consumers wanting to shop online. The hardship noticed with Western Union is among the reasons Ripple introduced different tools to achieve hassle free crossborder payment.
One, xRapid which survives on Ripple’s digital asset XRP, is fast and comes with the state of the art communication system via the RIppleNet.
Another one is xCurrent that uses Interledger Protocol to achieve payment within 25secs. If any of these tools is employed, it is easy for the firm to save millions of dollars and coast the mind of its customers rather than depending on Western Union with Archaic tools.
Today, one of Ripple’s executive, Cory Johnson, mentioned that Amazon Save One Billion Dollars in Nostro accounts just to pay its users across the globe. If the company had employed Ripple’s tools, it would have used the money for something meaningful rather than putting it in Nostro account in different countries.