Ripple is sure a standing ovation in the crypto space not just because of its undeniable real world use case, but due to its viability and efficiency in the remittance sector, making banks and other financial institution see its tool as a sine qua non for their existence. Furthermore, Ripple is undoubtedly a game changer for the Overseas Filipino Workers (OFWs).
For so long, transferring of fund to friends and families in Philippines has been a major challenge for the OFWs, as the remittance process in this day and age still has to go through several banks and remittance centers which attracts pretty high fees and days for complete facilitation of transaction.
However, Ripple blockchain technology came to the rescue of the Philippines remittance market that hit an inflow of $30 billion mark in 2018. Philippine is the third top remittance country in the world with over 10 million overseas Filipino workers transferring fund home.
The remittance guru Fintech firm offer users almost instantaneous transfer across the border with meager cost, setting OFWs and others free from the bondage of archaic services obtainable from banks and remittance centres.
For foreign workers including OFWs who want to send money home through banks, the mundane procedure involves transfer through several transactions and occasionally multiple banks before it reaches its destination.
For such transaction to be successfully executed, each bank and remittance company involved in the settlement take their share for the services they offer. As such, receivers get lesser than the original amount transferred.
It has been estimated that an average of 8% charge gets deducted from every money transferred to Philippines, meaning for every $1000 transferred, a whopping sum of $80 is charged and the receiver gets $992.
Adding salt to the injury, the recipient receives the cash days after it has been transferred.
Salvaging the hassles of foreign workers amongst others, Ripple Lab offers a blockchain based technology solution that makes international transaction faster and cheaper than ever expected.
Added to the benefits, Ripple makes use of its native cryptocurrency, XRP, for money transfer, eliminating all forms of middlemen.
As things stand now, countless of top banks across the globe utilizing Ripple blockchain technology and XRP for international transactions do not to prefund account anymore.
In all continents of the world, XRP is growing its trenches by collaborating with more banks and other financial institutions including payment centers.
With all sincerity, all partners of Ripple has so far testified to the potency of its blockchain solution, and none of its partners has disengaged itself from the firm.