Western Union, the international money transfer firm, is currently studying the payments-as-a-service (PaaS) model of Ripple. The firm is considering using XRP for its cross-border payment services. In the past few years, it has been seen that the global payments sector is growing rapidly.
Western Union is currently exploring whether XRP will be able to help the firm for quicker settlements for international payments. Along with this, their major focus is on the cheaper processing cost.
Western Union Testing Ripple’s Technology For Some Time
Hikmet Ersek, CEO of Western Union, has said that they have been testing the technology of Ripple for a long time now. The major thing that has attracted the firm is the cost difference that they are seeing as compared to others.
According to the 2020 American Equity Research, cryptocurrencies are not adopting cross-border payments adoption. The research states that Ripple is having the huge potential to reduce the overall settlement time.
Easing Cross-Border Payments
Ripple has entered into a partnership with MoneyGram in June 2019 in order to ease the cross-border payments. Ever since this partnership was formed, Ripple has already sold $11.3 million worth of XRP. As far as Western Union is considered, it has gained huge importance in the market and earned a brand name. Now this planned collaboration between both these firms to use the PaaS model is going to be a huge milestone for the cross-border payment sector. Western Union is also having a group of investors who are having a major focus on all the blockchain and crypto-related projects. The firm is studying all of Ripple’s features that are related to transfer and different payment services. Although, it is yet to be assessed, how beneficial these features are going to be, and how the firm can incorporate all those things into their platform for a better global payments network.