Telecom company IDT and global currency exchange provider MercuryFX are joining forces with blockchain startup Ripple to use xRapid, Ripple's solution for on-demand liquidity, for quick settlement of retail remittances and corporate transactions.
The announcement follows MoneyGram and Cuallix’s recent partnership with Ripple to trial XRP token in payment flows.
“It’s no secret that XRP is faster and more efficient than bitcoin or any other digital asset. It settles in three seconds and at fractions of a penny,” said Brad Garlinghouse, CEO of Ripple. “Payment providers like IDT Corporation and MercuryFX are early movers because they understand what XRP can do for their business and customer experience. We’re excited to have them at the forefront of the Internet of Value.”
MercuryFX aims to move payments in real time, providing a more efficient and transparent customer experience. Alastair Constance, CEO and founder of MercuryFX, said that xRapid will enable them to lower the cost of currency exchange and global settlement, thereby making its customers more competitive and saving their tens of millions of dollars each year.
“Digital assets promise fast transaction speeds but XRP is far faster than all of them, including bitcoin. Cutting settlement times from hours and days to just three seconds or less will remove billions of dollars in unnecessary intermediary fees,” Constance added.
IDT aims to drive down the cost of global payments for its customers. xRapid and XRP can help the company achieve this goal as they eliminate the need for costly intermediaries or pre-funded Nostro accounts in destination currencies.
“Our BOSS Revolution international money transfer business routinely utilizes digital assets to generate liquidity in fiat currencies for our disbursement agents as part of our transaction settlement process,” said Alfredo O’Hagan, senior vice president of IDT’s consumer payments business. “We’re excited to pilot Ripple’s xRapid solution for on-demand liquidity. We expect that xRapid will enable us to settle more transactions in real-time and at a lower cost.”
