Ripple has been pioneering DLT based global payments for a long time, partnering with over 200 companies, most of whom are banks and other financial institutions. Particularly, it is working hard in emerging markets, where global payments are a big issue. Making cross-border payments from developing countries is expensive and time-consuming. This makes business operations and expansion quite difficult.
Ripple aims to eliminate these difficulties through blockchain-based payments, and help firms in emerging regions like South America, Asia, North Africa, etc., to expand their business reach. One such example was posted by Ripple, where it informed about a particular developer business model, which benefitted hugely by Ripple’s technology.
Ripple helped Brazilian entrepreneur, Erick Gutierrez to establish his business on the world map, by solving his major problem, money transfers. As per the post, Gutierrez was facing several issues with traditional payment methods, and even platforms like MoneyGram, PayPal, Western Union, etc. They were either too expensive, or took too much of time to process the payment, or is some cases, did both.
— Ripple (@Ripple) July 29, 2019
Ripple helped Gutierrez to make payments to his freelancers from all over the world, and also hire people from others on a full-time basis due to the structure of the formidable payments. On the other hand, it started receiving money quickly from his international clients, and within a few months, the website visits increased from half a million in 2017 to 1.5 million per month today.
Gutierrez used Ripple powered Brazilian payments processor BeeTech Global, which helped cut down payments time from five days to one. It also helped the firm pay payment fees up to 80% less than other options. This alone saves significant time and money for the company to focus on its core competencies, rather than waiting for payments processing.
In its official blog on its website, Ripple wrote,
With Ripple, BeeTech was able to eliminate SWIFT fees for all of its remittance corridors, dropping in its own fees from $20 to $2 per transaction in the process.
This could be an example of how blockchain-powered payments to change the business scenario in the developing markets like India, Brazil, Taiwan, etc., where money flow is generally barred by such obstacles. Ripple, along with SWIFT, and Stellar can create a global payments structure, which surpasses political restrictions, reducing time consumption and processing fees significantly.