Ripple’s cutting-edge technology solutions that have revolutionized cross-border payments have earned recognition from Mastercard. In an effort to diversify its business, Mastercard has embraced modern technology and partnered with Ripple to digitize payment solutions, thereby creating new business prospects.
Mastercard’s recent report focuses on Ripple and its XRP remittance solutions, delving into the future of remittances in Latin America and emphasizing the benefits of digitization and partnerships.
As previously reported, Mastercard has been exploring blockchain technology and has collaborated with various blockchain-based companies, including Ripple. Last year, it was revealed that Mastercard and Ripple were working together to introduce an innovative XRP debit card, merging traditional finance with digital innovation. Additionally, they are developing a Central Bank Digital Currency (CBDC) on the Ethereum blockchain.
The report highlights the remarkable growth of remittances, particularly in Latin America, which have been growing at a rate of 10% annually since 2014. The U.S. and Mexico corridor have the largest remittance volume in the world, projected to reach US$65 billion by 2023. This corridor serves as a valuable case study for trends and opportunities in cross-border payment solutions.
The report also addresses the need for financial innovations in underserved or unbanked communities. It identifies the key requirements of these communities, including digital payment solutions in a cash environment, transaction transparency and security, regulatory compliance, rewards programs, financial education, and convenience.
The research team recognizes blockchain technology as a viable solution for these challenges and acknowledges Ripple for its superior technology and payment infrastructure.
Mastercard acknowledges Ripple, Stellar, and Circle for their contributions in enabling faster and more transparent international money transfers. Ripple’s partner, SBI Remit, which utilizes XRP for cross-border transactions, was also commended. SBI Remit even launched XRP-based remittance services in three Asian countries in September of last year. Mastercard also highlights Ripple’s collaboration with countries like Palau in utilizing Central Bank Digital Currencies (CBDCs) to enhance payment services.
This is not the first time Ripple has received such recognition. MoneyGram has previously acclaimed Ripple as the best remittance platform. Other notable partnerships include the National Bank of Egypt (NBE), which has teamed up with Ripple to process remittances to its own country, and the Qatar National Bank, which has announced its partnership with Ripple to enhance global cross-border payments. SBI Holdings has also committed to Ripple and XRP as the go-to solutions for cross-border payments.
Mastercard sees immense potential in digital remittances, with the market projected to reach $550 billion by 2026, growing at a rate of 8% annually. Meanwhile, Ripple forecasts a staggering $250 trillion market for cross-border payments by 2027. Through collaboration and the utilization of XRP, both companies have the opportunity to capture a significant share of this rapidly expanding market.