Harnessing the high speed and low cost of blockchain technology, Australian fintech and digital payments company Novatti Group (ASX: NOV) has partnered with Ripple to enable real-time remittance between Australia and Asia.
The partnership will enable Novatti to process global payments instantly through RippleNet Cloud, a blockchain payments network used by more than 300 financial institutions including American Express and Moneygram.
“This partnership will further increase Novatti’s competitiveness and provide our customers with access to new, innovative payment solutions,” said Novatti Managing Director, Peter Cook.
“In particular, we look forward to working with Ripple to provide our customers with access to their exciting alternative financing solutions, so that our customers can free-up capital to focus on growing their businesses.
“This partnership will fast-track Novatti’s international expansion, particularly in South-East Asia. In doing so, we aim to deliver increased transaction volumes and revenue growth for Novatti’s core payment processing business.”
In recent years, Ripple has emerged as one of the financial industry’s most effective disruptors with RippleNet’s speed of transactions providing its partners with financial solutions at a fraction of costs compared to traditional banking systems. Bi-directional messaging, settlement, liquidity management and lines of credit are just some of the services offered to Ripple partners where Novatti’s utilisation will initially cover cross-border payments between Australia and South-East Asia.
The partnership opens doors for Novatti to expand their use of RippleNet Cloud into other regions which would create further potential revenue sources for Novatti’s payment processing business that processes more than $2.3 billion in transactions annually.
Joining forces with Ripple caps off a very busy year for Novatti which has emerged as partner of choice among Tier One players in the fintech space having added Visa, Alipay, UnionPay International, Google Pay, Samsung Pay, Marqeta, and Decta, all in the past 15 months and been key to Novatti’s five consecutive Quarters of record revenue.
Alongside their expansion into South-East Asia through this new Ripple partnership, Novatti has also flagged North America expansion plans for their billing automation software division in 2021 having undergone a major hiring spree over the past three months.
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What is RippleNet?
RippleNet is the transaction network developed by the privately held blockchain technology company – Ripple. It allows payments to be made almost instantly (approx 4 seconds) between any currency (including other cryptocurrencies) with a tiny transaction fee of US$0.00001.
Being a blockchain ledger, RippleNet is inherently a more reliable system than the old-form transaction networks typically used by financial institutions.
Normally, transacting between currencies involves much larger foreign exchange commissions due to conversions to and from US dollars which acts as the mediator. RippleNet solves this problem by using its own mediator, XRP.
What is XRP?
Rather than using US dollars to derive the value of the two currencies used in the transaction, Ripple uses its own token (XRP) which allows for a much more efficient transaction. Traditional banks would typically take days to completely process this type of transaction, that is why it has become a popular tool for banks which includes Westpac, UBS, and Union Credit.
XRP itself is tradeable and is one of the largest crypto tokens by market capitalisation. Typically it is what people are referring to when they mention Ripple.
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