With the dramatic changes in the global economy, digital payment services are playing an increasingly critical role for people around the world. Today’s crisis highlights the need for cash, access, speed and reliability, especially for those who send money to their loved ones.
In this context, Ripple’s senior vice president of product management and corporate development, Asheesh Birla, has indicated in his latest report at Ripple Insights, that the San Francisco-based payments startup plans to open new XRP remittance brokers this year.
Around the world, digitalization has increased rapidly – up to 80% in Italy, for example. The global growth of digital payments is also accelerating, with electronic transactions increasing by more than 40% and digital remittances increasing for several payment providers, including Western Union and MoneyGram International.
MoneyGram sees 100% growth over 2019 usage
Warren Anderson, head of developer relations at Ripple, says the global payments company has been processing more than 10% of the total money flow in the U.S.-Mexico corridor through its Bitcoin Revolution remittance platform, ODL.
Ripple is the third largest corridor in the world
Speaking virtually at Reimagine 2020, Anderson noted that Ripple had slowly begun to publish data on his remittance flow between the two countries, which is the third largest corridor in the world.
„Therefore, the United States-Mexico is one of the largest remittance corridors in the world, and Ripple was seeing that over 10% of that flow actually went through our production network.
Ripple’s payment flow between the U.S. dollar and the Mexican peso is driven by the Mexican-based Bitso encryption exchange in a partnership formed in late 2018. In March, the exchange announced that it processed 2.5% of remittance transactions from the United States to Mexico. Bitso’s chief financial officer, Barbara Gonzalez Briseño, attributed that success to the company’s partnership with the San Francisco-based startup.
In that sense, the liquidity index of the pair XRP/MXN in Bitso has recently had a new historical maximum at the end of last month, when it reached a record of 37.3 million, demonstrating the usefulness of the platform for cross-border payment on the U.S.-Mexico border.