The foreign exchange service Mercury FX says it plans to move millions of dollars worth of cross-border payments using Ripple’s XRP-based xRapid.
The company recently announced its largest commercial payment sent using the cross-border payment solution, sending a payment of $4,574 from the UK to Mexico. The payment executed in a matter of seconds compared to the 31 hours it would normally take on traditional payment rails. The fees were also dramatically reduced, saving a total of $102. After the successful test, the company says it plans to continue sending increasingly large payments until it hits the millions.
“Rather than see cryptos and blockchain technology as a threat, we have for some time been looking at the optimal ways to embrace and integrate said technologies. We believe that the more established blockchains will eventually replace the SWIFT network alongside other, frankly, clunky payments networks. Cryptos will be used as a conduit to replace fiat eventually…
As with all things, we will start with modest sums and add zeroes as we progress. Come the end of the pilot, there is no reason we shouldn’t be making payments of a million dollars or more.”
The company says it’s also testing a payment corridor between Mexico and the Phillippines.
“Mercury will be testing payments into Mexico and Philippines with Ripple, and we’re most excited about the potential to bring currently unconnected markets into the fast lane of global finance. Allowing people access to the international markets will create new markets and allow those currently without access to begin to trade with the global financial community and monetize their goods and services.
The possibilities for poverty alleviation are vast, not just in terms of much lower costs but also in terms of financial returns for the emerging markets.”
Ripple launched xRapid for commercial production in October. A total of 13 companies say they plan to utilize the technology.