Ripple xRapid Payment Solution Is Officially Live And Open For Business
xRapid, Ripple's real-time payment and settlement solution for cross-border payments, is now live and commercially available, the crypto company announced on its website on October 1, 2018.
xRapid, Ripple’s real-time payment and settlement solution for cross-border payments, is now live and commercially available, the crypto company announced on its website on October 1, 2018.
xRapid revolutionizes payment processing
According to the San Francisco-based company, two payment providers and a cooperative firm will utilize xRapid to complete faster and cheaper transactions across borders, with Mercury FX, Cuallix, and Catalyst Corporate Federal Credit Union being the first to deploy the product.
Ripple developed xRapid as a blockchain-based solution that would accelerate international payments, and at the same time eliminate the need for a costly Nostro account.
It is a milestone for Ripple, with the product utilizing its XRP token to provide liquidity to financial institutions.
Asheesh Birla, Ripple’s SVP of Product, told CNBC:
“I’m excited to bring the product into the market at a time when there is a lot of skepticism about digital assets and their real use case.”
In May, Ripple released results of a pilot phase for xRapid in which MercuryFX and Cuallix took part. The test results excited many within the XRP community as they showed that financial institutions could save 40–70 percent in transaction fees.
The results also indicated that xRapid, using XRP, reduced transaction time from 2–3 days to less than three minutes.
The company has said that three initial firms are launching commercial uses for xRapid, which will be deployed in three different payment processing sectors.
Cuallix will use xRapid to continue providing the best services for users on the highly lucrative and critical U.S- Mexico remittance corridor. MercuryFX is set to deploy xRapid in another key zone, the Europe-Mexico corridor.
Catalyst Corporate Federal Credit Union, a financial firm that serves multiple credit unions all over the U.S., is integrating xRapid in the development of a payment service that will use XRP to provide cross-border payments.
MercuryFX CEO Alastair Constance said that the pilot tests showed how beneficial xRapid is and that the “time to replace slow, expensive payments architecture is now.”
Nicolas Palacios, CFO of Cuallix said that they are excited to offer their users, “whose livelihoods depend on sending micro-payments” a platform that makes that process easier, cheaper, and faster.
Catalyst Corporate Federal Credit Union SVP Brad Ganey said that Ripple’s xRapid provides solutions to the challenges facing traditional wire transfers in cost, speed, and ease-of-use. He added that the firm would leverage the XRP product to serve its more than 1,400 member credit unions.
Will Banks adopt xRapid?
Although three firms are standing ready to roll out an XRP-based product, Ripple has not announced whether any of its numerous bank partners were looking at xRapid.
SVP of Product Birla has explained that, while banks and other big lenders will eventually embrace xRapid, they were unlikely going to be among the first to implement it.
Birla said that banks would move towards adopting such digital solutions, but it will most likely depend on the regulatory environment and the local market.
The executive, however, thinks that banks in emerging markets were likely to be the first to look at how to integrate the Ripple’s crypto product. He said:
“Those countries have a lot more forward-looking regulation when it comes to digital assets, so I would envision that those would be the first bank adopters.”
The xRapid movement has gained some traction over the last few months. In August, the company entered into a partnership with three crypto exchanges with building an ecosystem that supports a healthy digital asset exchange.
Bittrex, Bitso, and Coins.Ph will use xRapid to facilitate transactions between the native XRP and U.S. Dollars, Mexican pesos, and Philippine pesos.
Ripple’s XRP prices spiked significantly in September following a series of positive news. First was the announcement that PNC Bank would be using Ripple’s xCurrent that saw prices surge. Then hints that xRapid’s commercial launch was imminent drove prices higher – leading to its market cap surpassing that of Ethereum for a few hours.
XRP prices have, however, dropped, and Ripple is currently the third largest crypto by market cap behind Ethereum and Bitcoin.
At press time, the XRP token traded at $0.56 against the US dollar and has a market valuation of around $22.3 billion.