Santander Group, one of the largest banking conglomerates in the world, will be increasing the use of Ripple’s services, by introducing the Ripple powered remittance service, One Pay FX in Latin America. The banking giant from Spain is building a payment corridor, which would enable users Latin America to send and receive money to and from the United States, using Ripple’s technology.
While there hasn’t been any official announcement revealing the countries’ names, Santander is expected to release the corridor in the ones it has a stronghold, like Mexico, Brazil, Chile, Uruguay, and Mexico. As of date, the One Pay FX is credited for more than 50% of the bank’s profits in countries like Spain, the UK, Poland, etc.
However, being in line with its previous blockchain undertakings, the corridor will not involve the XRP token, Ripple’s native cryptocurrency, which the blockchain company uses to power its other offerings like XRapid and XCurrent. Commenting of the progress, CEO of One Pay FX, Cedric Manager said,
Customers who were not doing international transfers are now using the service, customers who were using international transfer are now doing it more, and customers who had gone to use fintech competition have come back because of the One Pay offering.
Santander has reported that the transaction volumes of One Pay FX have tripled between January to June 2019, while the volumes back home grew year-on-year by 120% in April 2019. This makes Santander a formidable force in blockchain-based banking services, but not the only one. In 2018, another European banking giant, HSBC executed forex transactions worth over a whopping $250 billion.
Ripple is among the leading blockchain companies pushing for global mass adoption of innovative technology. Currently, the network has partnered with over 200 entities, most of which are banks and other financial institutions. The network will also like to enlarge its footprint in Latin America, a booming region for crypto and blockchain. Most of its competitors, including SWIFT, Stellar, and others, are gunning for a share in the rapidly growing market.