Ripple recently released new numbers on a series of pilot tests with xRapid, the company’s real-time settlement platform that uses XRP to provide on-demand liquidity and dramatically increase the speed of cross-border payments. For payments between the US and Mexico, Ripple says financial institutions using xRapid saved 40-70% on what they would typically pay foreign exchange brokers.
Here’s a breakdown on what those numbers mean for potential savings on global remittance payments per year. According to the Pew Research Center, nearly $600 billion in cross-border payments are sent from relatives to loved ones in their home countries each year, at an estimated cost of about $30 billion.
Applying Ripple’s estimates on the savings of each payment shows a savings of anywhere from $12-$21 billion a year. Ripple has released its own breakdown of the numbers, using 55% as an average cost savings per remittance.
Financial institutions would have to pass the savings onto customers in order for the above savings on meals, bills and rent to be realized. Check Out the Latest Headlines Ripple partner and Japanese financial powerhouse SBI Holdings says it will bring customers from its massive userbase of more than 23 million people to its new cryptocurrency exchange.
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