UAE remittance firm joins Ripple’s blockchain
Aiming to bring real-time messaging, clearing and settlement to its global financial transactions.
UAE Exchange, a leading United Arab Emirates (UAE) global money transfers company, is the latest business to adopt the RippleNet blockchain network in order to process real-time payment solutions for its customers.
UAE Exchange is one of the world’s largest money exchange firms. The agreement with Ripple will enhance the company’s ability to provide real-time messaging, clearing and settlement of global financial transactions.
During a recent interview on Dubai Eye’s Business Breakfast podcast, UAE Exchange chief executive Promoth Manghat explained the benefits and efficiencies of switching to Ripple’s blockchain solution for payments.
“The [current] process is a very long process… an archaic process… where it takes almost 24 hours during the week and it can go to 72 hours during the weekend,” Manghat said.
“Blockchain has the potential… to come closer to the reality to achieve an instant payment system.”
However, Manghat added that “cost-wise [the deal] isn’t going to make a substantial difference”.
The reason for this, according to Manghat, is that, due to the high level of domestic competition, the UAE money transfers market already “ranks as one of the cheapest places for remitting money”.
“New technology brings efficiencies and efficiencies help us to scale the type of activity we’re doing,” he said.
UAE Exchange was founded in 1980 and is based in Abu Dhabi. The company’s global footprint extends across five continents and 31 countries, operating nearly 800 branches and employing more than 9000 professionals.
Ripple has already signed over 100 partners who utilize its RippleNet blockchain.
As with Ripple’s recent partnership agreement with Chinese payment provider LianLian to conduct overseas transactions, the deal between Ripple and UAE Exchange will not utilize Ripple’s XRP token for liquidity.
After teaming with international currency transfers firm MoneyGram in January, Ripple recently announced that IDT Corporation and MercuryFX will pilot xRapid to settle retail remittances and corporate transactions.