Ripple is all set to expand in the Asian Region, vide its partnerships with SBI Holdings. SBI-Ripple Asia is a joint venture between SBI and Ripple.
There has been a steady increase in the outflow of remittance from South Korea over the past ten years. To improve their exposure in Asia, SBI-Ripple Asia will be constructing a blockchain platform to facilitate international remittances, which will facilitate quick and cheaper transfers.
VISA has entered into the Blockchain world, and it is seen that it is competing with Ripple. Several of the traditional payment companies have been a lot behind when it comes to updating themselves concerning blockchain technology.
The company announcement read, “Integrating blockchain based solutions into current business practices is a big deal for the industry and one-of-a-kind move. The firm looks forward to collaborating with industry leaders such as Commerce Bank in the US, South Korea’s Shinhan Bank and Union Bank of Philippines, to name a few. The bank-to-bank transactions carried out with these partners will mark the first successful commercial launch of Connect”.
Connect is the most coveted project of VISA, and with the coming of this project, the way B2B transactions are carried out will change. The blockchain enabled platform from VISA will be provided for the direct bank to bank transfers with any aggregators.
The market capitalization of Ripple is vast. Due to the brand’s success, VISA is well known for charging premium rates. VISA has come a long way away from regulatory hurdles for its previous products like the X-series products. There are complex regulatory issues in the blockchain world. When it comes to facing all these issues, it can be difficult for VISA to deal with it.
VISA has made a bold move into blockchain technology for payment processing. While VISA is bold, it might not be a wise idea for VISA to complete with Ripple or to go after its market share.
The Global head of banking from Ripple stated that the future of blockchain technology is based on liquidity. Payments start with liquidity and end with liquidity. She stated, “This is where you will come face to face with the limitations of a piece of technology which has been in use for 40 years, and you will need something new. Liquidity management is really where the cost lies for banks because now, some of the oldest markets in the world are moving to real-time. Of course, that is for small-ticket amounts, but as soon as your system and processes adapted to that, you can move to the large ticket amounts.”