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Ripple’s technology provides an alternative to traditional payment solutions by combining speed, transparency, reliability, cost, reduced capital requirements and growth opportunities, essential to reaching populations that do not have access to traditional banking services.
The number of people who do not use banking is huge: According to the World Bank, 1.7 billion adults do not have access to banking services today.
Non-traditional payment channels often attract people without access to banking services who have difficulty meeting the capital bank’s requirements for official remittances. Underserved markets are especially prevalent in South and Southeast Asia and the Middle East today. In coercive markets such as modern Myanmar, they can serve as vital lifesavers.
It is important to note that these unregulated flows of funds are not necessarily illegal transactions. In some cases, they may even be offered by fully licensed operators who simply have more liquidity than other, more popular channels. Of course, these trades are not without risk.
In addition to the inherent risks of using underserved market providers, these corridors are currently under increasing pressure from two rapidly changing forces: digitization and COVID-19.
Ripple Payments Reduce Risks By Replacing Gray Markets
Ripple, through its RippleNet payment network, already serves as an attractive alternative to most other payment solutions due to its combination of speed, transparency, reliability, cost, reduced capital requirements and growth opportunities. But for those payment companies that typically operate in underserved markets, RippleNet also, crucially, provides an efficient and legal way for payment companies to connect with other high quality, licensed and regulated partners around the world.
RippleNet provides real-time transactions, highly competitive exchange rates and complete transparency from start to finish, and frees up working capital and helps to solve liquidity problems. Together, they provide a regulated cross-border payment solution that instantly digitizes and modernizes money transfers, and provides a fast way to connect with new payment partners.
Providers using Ripple can diversify their operations and mitigate risks at a time when regulators tighten their oversight and a growing number of traditional banks are pulling out of the remittance business.
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