Spanish banking giant Santander group, is expanding its use
of Ripple’s technology. The bank is reportedly putting in place a “payment
corridor” that would let customers in Latin America send money to the U.S
instantly for free via One Pay FX, a mobile app that uses Ripple’s xCurrent software.
At the moment, sending money the US through One Pay FX is
only available to customers in the U.K and Spain. The bank is yet to reveal what
Latin American countries would be served by the “payment corridor and how many.
We do know though that the bank already serves customers in Brazil, Uruguay,
Mexico, and Chile.
The bank introduced this One Pay FX offering to four
countries that contribute to half of the bank’s profits last year. These
countries include Poland, Brazil, Spain and the U.K, which are all fast
countries as far as cross-border payments are concerned.
According to the bank, this payment offering is gaining a
lot of admirers. The CEO of One Pay FX Cedric Menager certainly agrees after
noting an uptick in cross-border payment activity through the service. Menager
“Customers who were not doing international transfers are
now using the service, customers who were using international transfer are now
doing it more, and customers who had gone to use fintech competition have come
back because of the One Pay offering”
He went on to highlight the difference between what banks
have traditionally used for payments, and what the Xcurrent powered system is
“Unlike the SWIFT messaging system that banks traditionally
have used to make international transfers, xCurrent is instant, has no fees and
gives users a view into currency exchange rates before they send money”
Though Santander group is yet to reveal the transaction volumes
for One Pay FX, it said that volumes had tripled from January 2019 through to
June. According to One Pay CEO Cedric Menager, expanding to Latin America will
help give customers in those countries more payment options.
“The international payment experience in the Latin American
markets is even less evolved than in the European markets,” he said. “There are
even parts of the Latin American market where it’s almost impossible to do an
online international payment.”
The bank also plans to expand this payment corridor into the
U.S. this will give U.S customers the ability to send money abroad instantly
and free. The bank has not yet set a time line for the launch of the service
The launch of the One Pay FX payment corridor in Latin America will change lives. It will save the user’s time of having to visit bank branches for international payments that take days to get to the recipient. Latin American users will now be able to make instant, and free cross-border payments online.
Image Courtesy of fundera.com