Ripple (XRP) technology xRapid, a payment system is currently going through its test phase. Several companies are already using it as a mode of payment transfer. Even though at present, no major banks are participating in the test run of xRapid, the moment Ripple rolls it out in the next couple of months, important players in banking and finance sector could jump in.
As per reports, many major banks are right now using Ripple technologies’ other product xCurrent. This is why the shift from xCurrent to xRapid may be much easier and quicker for all of them. Ripple’s statement says that its product xRapid is for financial institutions, especially for the payment providers who want to cut down liquidity costs and improve customer experience.
xRapid to offer scalable and efficient option for cross-border payment
Right now, liquidity costs are quite high because making a payment into an emerging market requires a pre-funded local currency account. xRapid will dramatically lower this cost by using XRP as a digital asset and enable real-time payments in evolving markets. The statement says that XRP has been built for enterprise use and will offer a highly scalable, reliable and efficient option for cross-border payment services.
Currently, Ripple is struggling to survive xRapid’s launch could help give it the momentum in 2018 that it is looking for. Ripple is yet to announce a date for the commercial roll-out of xRapid. However, Sagar Sarbhai, the head of Regulatory Regulations for Asia-Pacific and the Middle East, Ripple recently hinted that Ripple will launch xRapid commercially very soon.
Ripple’s products assure frictionless transactions
Sarbhai said, “We’ve been working on this product for the past 2 to 3 years, and I’m very confident that in the next month or so, you will see some good news coming in when we launch the product live in production.” Banks and institutions favor Ripple’s products as they make frictionless transactions at a global level possible while the other current infrastructures for international payments are still a mess.
Ripple uses XRP, the cryptocurrency token and blockchain network for bypassing the entire process. Once in the market, xRapid will handle conversion and transmission of funds at the international level.