Santander to Use Ripple’s International Payment System
Banco Santander, a global Spanish banking group, will use Ripple’s blockchain-based xCurrent for cross-border mobile payments. xCurrent is an enterprise software solution that is designed to facilitate international payments between banks. The payment system includes end-to-end tracking and allows banks to communicate using real-time messaging. This service is being launched after Santander internally tested Ripple’s payment processor for 18 months. Plans to launch what the bank calls “Same Day International Mobile Payments” were announced during Santander’s 2017 earnings presentation.
According to reports, the pilot study was conducted using Apple Pay, a mobile payment and online wallet offered by Apple. The proprietary Touch ID feature was used to ensure secure logins, and payments ranging from £10 to £10,000 were tested. For now, Santander’s payment system will be available in the UK, Poland, Spain, and Brazil. Per Santander, “We expect to be one of the first global banks to roll out distributed ledger technology based payments for individuals”.
Executives from Ripple and Santander Offer Their Insight
Ed Metzger, Head of Innovation at Banco Santander, believes that Ripple’s technology will have a strong influence on the banking industry. He points out that blockchain tech has captured the interest of many, but feels that it needs to be improved. He also acknowledges that there are “concrete use cases” for distributed ledger technology (DLT), and his company would like to implement some of them in the foreseeable future.
Meanwhile, Marcus Treacher, Global Head of Strategic Accounts at Ripple, seems to have a similar opinion and outlook regarding the current state of DLT as Mr. Metzger. He thinks that blockchain technology has been introduced during a time when society has not advanced to the point where it can take full advantage of its true potential. The Ripple executive explains that we’re still using the same inefficient methods to process information that have been around for decades. However, he believes blockchain will dramatically change how we operate in the future. Additionally, Mr. Treacher uses the word “dysfunctional” to describe the world today. He then adds that “it will take time to embed that technology [blockchain] and begin the transformation”.
Many Other Partnerships
As most crypto enthusiasts are aware, this isn’t the first major partnership for Ripple. Last month, MercuryFX, MoneyGram, and IDT Corporation decided to test Ripple’s xRapid platform. xRapid is another one of Ripple’s international payment systems that is designed to instantly transfer funds in a cost-effective manner. Clearly, Ripple’s technology is in its developmental and exploratory phases. Nevertheless, if this technology can work as intended, then it will definitely have a significant impact on how money is transferred. Moreover, it could even change how the banking and financial industry functions.