XRP The Digital Asset for Payments
“It’s the fastest and most scalable digital asset, enabling real-time global payments anywhere in the world.”
Built for enterprise use, XRP offers banks and payment providers a reliable, on demand option to source liquidity for cross-border payments.
What is Ripple? As modern global payment infrastructure, Ripple’s distributed financial technology solution allows banks to efficiently transact with other banks and payment providers to efficiently settle transactions in real time. Ripple eliminates time delays and ensures certainty of settlement, resulting in new revenue opportunities and lower transaction costs for banks and their customers. Using Ripple, banks can meet the growing demands for faster, low-cost, on-demand global payment services for any ticket size and offer better overall customer experiences.
Key Features
Ripple’s solution is built around an open, neutral protocol (Interledger Protocol or ILP) to power payments across different ledgers and networks globally. It offers a cryptographically secure end-to-end payment flow with transaction immutability and information redundancy. Architected to fit within a bank’s existing infrastructure, Ripple is designed to comply with risk, privacy and compliance requirements.
Interledger Protocol (ILP)
All banks and payment providers — from the smallest to the largest — can leverage the Interledger Protocol to securely and efficiently transact cross currency. ILP can work with any new network or system, regardless of its underlying technology. It ensures the payment speed and certainty necessary to service high volumes of all payment types and sizes, while making them cost-effective for customers and profitable for banks.
Ripple Connect
Ripple Connect links the ledgers of financial institutions through ILP for real-time settlement of cross-border payments in a way that preserves the ledger and transaction privacy of the financial institution. Additionally, Ripple Connect provides a way for banks to exchange originator and beneficiary information, fees and the estimated delivery time of the payment before it is initiated — providing unprecedented visibility into each transaction.
Key Features
DISTRIBUTED
Direct bank-to-bank settlement with no central operator
Decentralised network containing a single source of truth
Transaction immutability and information redundancy
SECURE
Complete transaction privacy for each financial institution
PII data stays behind your bank’s firewall
Transactions cryptographically signed using ECDSA and ED25519 algorithms
SCALABLE
Capacity to process the world’s cross-border payments volume
Unbounded transaction processing capability
Option to access liquidity through a competitive FX marketplace
INTEROPERABLE
Ability for banks on different networks to transact directly
Integration with existing systems and standards
Ability to connect traditional and emerging financial networks
Why Financial Institutions are Adopting Ripple
The needs of today’s customers, both corporate and retail, have evolved significantly. They need the ability to send international payments of all sizes on demand and in real time, not just across banking networks, but also emerging financial networks, such as mobile wallets. However, payment networks today are fragmented and siloed, due to a diverse set of messaging and settlement protocols. Crossborder payment infrastructure bridges these networks but constrains what’s possible by design. For example, it doesn’t make good business sense for banks to offer low-value cross-border payment services or on-demand processing, despite rising demand. Today’s infrastructure was built to serve the opposite need — high-value payments or batch processing, resulting in high processing costs, lengthy settlement times, and a poor customer experience. These inefficiencies not only result in an enormous cost (an estimated $1.7 trillion1 per year for all participants in the ecosystem), but also fail to meet the needs of today’s banking customer.
Benefits of Ripple Access Ripple enables access to a global network of financial institutions and liquidity providers. Banks no longer need direct reach (nostro accounts) across all corridors to efficiently process payments. Speed Ripple’s solution provides real-time settlement between banks. Certainty Banks exchange payment and fee information on Ripple before payments execute, minimising the risk of failure. Funds settle between Ripple-connected banks in seconds with end-to-end visibility into every transaction. Cost Ripple reduces the total cost of settlement for every transaction, freeing up funds to allocate elsewhere.
