Alastair Constance, CEO Mercury FX, recently announced that Mercury FX, a global currency exchange provider, has commenced arrangements with the aim of using the xRapid framework by XRP, to run faster and low-cost global transactions which could be in the UK, Canada and also in the Middle East.
Mercury FX stated that it’s new xRapid payment corridor to the Philippines and Mexico is up and running and the first payment using xRapid was just completed on behalf of a client in UK, who needed to transfer money to make his honeymoon arrangements.
Mercury FX’s plans for xRapid
The company plans to enter into a partnership with XRP, to take advantage of their global reach in running financial transactions, making them a whole lot faster and cost effective. Speaking on the company’s plan for the future, Constance said :
“We have plans for the Middle East. We have plans for Canada, imminently. But I think the really exciting thing that xRapid and Ripple brings is it actually brings access to new markets that perhaps aren’t actually accessible now…
Its two countries today. It could be 10 before the middle of the year. And what stops it from being any more than that? “
Alastair also added that more countries will be added to the list of countries supporting payments made through xRapid.
Blockchain Technology for Payments
At the event, Alastair stated that they had been hearing of the blockchain technology and it didn’t take them much time to figure out how evolutionary this technology could be in making payments.
He added that “it was really a case of looking around and saying who’s the best at doing this and immediately Ripple came onto the radar screen and that was the beginning of the engagement which goes back about a year and a half”.
Constance compared the traditional SWIFT banking solutions with xRapid, adding that the former would soon become obsolete. Moreover, he thinks that as long as the transactions take a tiny fraction of the time it currently takes, customers wouldn’t care to know how it works. He said:
“I think from a customer point of view, you almost don’t want to show them too much of the technology or explain too much of why it’s working as it is. I don’t understand how a car works, but if it parks for me that would be even better. And I think it’s the same kind of thing. But what they are seeing is payments arriving in one-hundredth of the time and they’re paying a lot less, if anything, for it. And I think that’s the key.”
Why Ripple and xRapid ?
Alastair stated that making payments through xRapid doesn’t require high end technical knowledge and what makes it attractive is its ability to transfer large sums of money in a quick and efficient manner.
Ripple offered crucial support to Mercury FX platform for the implementation of its technology. Constance added that “Ripple were very keen for us to trial the xRapid payment process which we very gladly did, and we’ve had great success so far.”
“When you’re looking at high volume payments for companies involved in import/export or remittances or whatever the case may be, when you start to look at the economics of how they stack in favor of a Ripple payment over xRapid, perhaps over Swift, the numbers are actually quite eye-watering and in terms of the usability the client is seeing an optimized outcome.”
In January, Mercury FX revealed that it had used xRapid to send a payment of $4,574, which is it’s largest commercial payment to date using the technology, from the UK to Mexico. The payment was completed in a matter of seconds as compared to the 31 hours it would have taken on traditional payment rails. It saved the company $102 in fees. Mercury FX also recently used the xRapid payment system and helped Mustard Foods save €79.17. Constance said:
“We did our first live commercial payments a couple of weeks ago. So we are now making payments for a UK corporate to Mexico to import Mexican food… And they are moving a lot faster than payments would go through Swift, at a much lower cost.”
Spread of xRapid
Ripple’s xRapid payment solutions is gaining exponential popularity in the global payment industry due to its very fast transaction time and very low transaction fees and simple understanding of the Ripple blockchain.
Euro Exim Bank, based in England have also adopted xRapid to make their transactions much faster. Graham Bright, the head of complaince and Operations at the bank, recently stated that they needed a payment system as fast, as protected and as dependable as one can possibly imagine and xRapid was the solution they found. He also said:
“We need our clients to be able to pay us in their local currency. It is very difficult for them to get a hold of dollars in some of the jurisdictions which we operate. So we need to make it easy to move funds as easily…and cost effectively as possible.”
Money transfer Giant Western Union is also exploring the implementation of xRapid to improve it’s services as are Japanese financial giant SBI Holdings which is bullish on the future of XRP, stating that it’s market cap will one day eclipse that of Bitcoin (BTC).
What do you think of xRapid as a medium for global currency exchanges and transactions worldwide ? Let us know in the comments below.