Blockchain payments provider Ripple said Thursday that results from its xRapid pilots show participating financial institutions saved as much as 70 percent on what they normally pay for cross-border payments.
The average xRapid payment also took significantly less time — about two minutes — compared with an average of two to three days for a typical cross-border payment, Ripple said in a news release.
Ripple is a blockchain-based payment platform that uses the XRP (XRP) cryptocurrency.
The financial institutions in the pilots were testing blockchain payments from the U.S. to Mexico, Ripple said.
The xRapid digital transfers are an alternative to traditional cross border payments that require senders to either prefund bank accounts in Mexico or go through the correspondent banking network.
“It’s clear that xRapid can lower liquidity costs while increasing payment speed and transparency in a way that facilitates rigorous compliance controls,” said Paul Dwyer, co-founder of money transfer company Viamericas, in the release. Read more here.