U.K.-based remittance firm TransferGo is planning to add Ripple’s payments solution On-Demand Liquidity (ODL) that leverages XRP - the world's third-largest cryptocurrency, to its ecosystem.
TransferGo currently already uses the RippleNet solution and ODL is part of RippleNet, which empowers the network, rather than being an alternative to RippleNet. The firm’s co-founder and CEO Daumantas Dvilinskas said by 2020, “even a few minutes will be too slow” and that’s why the plan of adding ODL.
TransferGo initially partnered with Ripple in Sept. 2018 to help Indian migrant workers send money home to their families via RippleNet “ in just a few minutes.” Now, the firm has expanded this partnership to allow any sender in Europe to transfer funds to a recipient bank account in India.
“Ripple gives us a competitive edge in India, which is the largest global cross-border remittance market, and today we’re moving more than a couple of million pounds per year,” said Dvilinskas.
He explained that before using RippleNet, TransferGo had to link up directly with its bank partners, but each one had a different technology stack. “Every integration was bespoke, which took up a lot of tech resources and was time-consuming. With RippleNet we saw a scalable opportunity to have one integration for multiple partners, so we don’t have to redo it each time.”
This has helped TransferGo reduce integration costs and pass it on to customers. “We’re helping people save up to 90% on traditional fees for cross-border transfers,” said Dvilinskas.
Looking ahead, TransferGo also plans to expand into new markets in Southeast Asia, Latin America, and Africa in 2020 to provide services via RippleNet. Founded in 2012, TransferGo currently supports 22 currencies across 47 countries and is licensed and regulated by the U.K.'s Financial Conduct Authority, according to its website.
Ripple's overall count of customers has crossed the 300-mark, it announced earlier this month, adding that “more than two dozen” customers use its ODL solution to settle cross border payments. Money transfer firms MoneyGram, Viamericas and FlashFX, online workforce platform that connects employers with freelancers goLance, and financial services provider Interbank Peru, are some of its customers that currently use ODL.
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