Ripple Pyypl Collab to Soon Provide Philippines Low-Cost Cross-Border Payments

Shumaila  |  Oct 26, 2021

Ripple, the firm behind the cryptocurrency XRP, has partnered with Pyypl, a Middle Eastern FinTech, to provide RippleNet's first on-demand liquidity solution for low-cost cross-border payments between the Middle East and the Philippines.

The usage of the digital currency XRP in an on-demand liquidity solution eliminates the requirement for costly pre-funded destination accounts. RippleNet's digital currency, XRP, serves as a bridge between two fiat currencies.

Ripple Pyypl Partner to Provide Low-Cost Cross-Border Payments Between the Middle East & the Philippines

Ripple has recently announced a partnership with Middle Eastern crypto startup firm Pyypl to provide cheaper cross-border payments between the UAE and the Philippines.

The ODL solution allows RippleNet, a network of banks and money service firms who use Ripple's solutions, to use the XRP token as a bridge between two fiat currencies, allowing them to transfer cash cheaply and instantly across borders.

The two businesses said on Tuesday that this will eliminate the need for pricey pre-funded destination accounts.

Brooks Entwistle, managing director of RippleNet in the Asia-Pacific and Mena regions stated:

“The Middle East and North Africa continue to be a critical region for Ripple thanks to … a welcoming regulatory environment and a regional focus on the needed improvements in the current financial system. The establishment of yet another first-to-market ODL launch demonstrates that digital assets will play a central role in the future of global payments.”

The MENA Region is a Hotspot for Money Transfer

According to the World Bank, the Middle East features two of the world's three largest remittance corridors, with the UAE and Saudi Arabia handling a combined $78 billion ($286.5 billion) in payments in 2020.

The Mena region has also undergone a significant digital transformation in recent years, making it ripe for FinTech innovation. According to the UAE Central Bank's annual report, outward personal remittances from the UAE fell by 5% annually – or Dh8.3 billion – in 2020.

According to the regulator, outward remittances through banks climbed by Dh9.8 billion, or 28.8%, while transfers through exchange houses declined by Dh18.1 billion, or 13.8%.

Ripple makes use of cryptocurrency to address cross-border payment issues. Financial institutions and small and medium businesses can use ODL to access previously stranded, pre-funded funds to build their businesses, according to the corporations.

Ripple's blockchain technology, which was founded in 2012, is now used by hundreds of financial institutions in over 55 countries.

Pyypl Eyes Expansion of Services in the Asian Region

Pyypl began offering ODL services in the Philippines after being granted a license by the Abu Dhabi Global Market's Financial Services Regulatory Authority. It intends to grow into new markets and investigate new use cases. According to the companies, the digital currency XRP will not be housed in the UAE, and transactions will not include UAE dirhams as part of the payment flow.

Antti Arponen, co-founder and chief executive of Pyypl said;

“We are excited to be Ripple’s first partner of choice to bring the deployment of ODL to the Middle East. This enables our users to deliver remittances instantly and cost-effectively. We have also reduced our inefficient use of capital through ODL and look forward to an exciting roll-out of its capabilities across the region.”

Pyypl facilitates digital payments for the one billion financially underprivileged smartphone users in the Middle East and Africa. LinkedIn listed it as one of the top 10 start-ups to work for in the UAE in 2021.

Ripple and SBI Remit launched a first-to-market ODL corridor in Japan, and Ripple bought a 40% investment in Malaysian cross-border payments business Tranglo to broaden the availability of its ODL service, according to the companies.

In December, the US Securities and Exchange Commission filed a lawsuit against Ripple and two of its executives for allegedly deceiving XRP investors.

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