Expanding their global network for cross-border payments, Aussie fintech company Novatti Group (ASX: NOV) has taken their relationship with crypto solutions company Ripple to the next level, adding Thailand to their network of international remittance corridors.
Under the expanded agreement Novatti will utilise RippleNet, Ripple’s global financial network, to process transactions with the first Thai bank, Siam Commercial Bank (SCB), for near-instant cross-border payments into Thailand.
Moving quickly, Novatti has already commenced generating revenue from its cross-border transactions into Thailand through RippleNet. While revenue will be dependent on the take-up of services, Novatti expects the partnership to result in thousands of transactions being processed monthly. Long time players in the international payments space, RippleNet is just one of the payment networks Novatti uses to process cross-border payments within their network that processes more than $2.3 billion annually.
“The partnership between Novatti and Ripple continues to go from strength to strength. Within the first year of our partnership, we have successfully launched and generated revenue from new services in two countries in South East Asia alongside leading local partners, such as Siam Commercial Bank,” said Novatti Managing Director, Peter Cook.
“The expansion of the Novatti-Ripple partnership into Thailand again highlights how Novatti can leverage its existing ecosystem to enter new markets.”
Owners of RippleNet, Ripple is more commonly known for the digital asset, XRP, a top 10 global cryptocurrency currently valued at more than USD$40 billion.
Utilising blockchain technology and digital assets, RippleNet’s On-Demand Liquidity (ODL) was first engaged by Novatti in April 2021 when the Aussie payments company tapped into the network for cross-border payments between Australia and the Philippines.
Novatti had also already lodged a patent application with IP Australia for a multi-cryptocurrency payment gateway which has positioned Novatti at the forefront of crypto payments and their real world applications in everyday life. Functional uses of crypto for digital payments are already being rolled out by Novatti which issues Visa cards that can be linked to crypto wallets as part of their work with CryptoSpend.
Leveraging RippleNet, financial institutions are able to process cross-border payments instantly which has substantial demand in emerging economies where large segments of the population remain un-banked. Going forward, Novatti has signalled its intent to continue growing its network in South East Asia via RippleNet where innovative payment and banking solutions continue to gather mainstream momentum in the previously cash-dependent economies.
Other major financial institutions that actively use RippleNet are American Express, Standard Chartered and Bank of America amongst hundreds of others in more than 55 countries.
The expanded partnership with Ripple continues a busy few months for Novatti which recently announced a 55% increase in revenue to $18.4 million for the year ended 30 June 2021.
Continuing to grow their revenue as they enter new markets and launch new payment products, Novatti was well supported by institutional investors in July when the Company successfully raised $40 million in capital to accelerate its international growth strategy.
In the coming months ahead, Novatti is expected to launch a merchant acquiring division and is widely tipped to be the next Aussie company to be granted a banking licence which will enable the launch of their neobank.
*Owners of this website are shareholders in a company mentioned in this article and have been engaged by them to assist in investor communications
- Epsilon taps into Jamaican cannabis supply through manufacturing deal for HummingBud - October 21, 2021
- Telehealth thriving as Doctor Care Anywhere record 41,000 new customers - October 20, 2021
- Novatti to drive Malaysia into the digital payments era with ATX acquisition - October 20, 2021