Ripple has said that blockchain technology and other fintech solutions will usher in the future of payments in 2020. In an official publication posted on Thursday, the company explains what the future of payments will look like. The publication also details events that are likely to unfold this year and how new technology will lead the way.
In the Future Payments Will Be Faster and Smaller
Ripple is stressing that as time goes on, financial institutions and payment companies will have to evolve. The company says that these financial institutions will have no choice but to grow and offer faster payments with low transaction costs. Ripple says that customers’ preferences will be the main driving factor of the new trend.
“This trend will accelerate in 2020 as customer demand for frictionless, on-demand payments grows – enabling solutions like the Interledger Protocol (ILP) and distributed ledger technologies to gain traction and scale up.”
Ripple Says Emerging Technology Will Be Strong Advantage
According to Ripple, banks and other financial institutions are beginning to realize the flaws in the current traditional system. One of the major flaws is the cost of running their services. All of the costs needed to keep the current systems running are currently a little too high. The need to reduce these costs will ultimately mean that banks will begin to look to emerging technology as a way out.
Cloud-hosted banking will considerably help here. Ripple expects that as time goes on, these institutions will be fed up with the towering costs, especially as the growth of cheaper alternatives is evident. Moving their core business to the cloud will significantly change everything.
One more point to be made for emerging technology is the fact that they support easy integration. There will always be a meeting point for artificial intelligence (AI), cloud technology, and blockchain, merging into one big interesting solution.
“The long-awaited tipping point from on-premise, traditional banking technology to agile, low-cost, cloud-hosted banking technology is getting closer.”
Already, Ripple is adding to the future of payments by partnering with relevant businesses. Companies like Ripple have also caught the attention of the U.S. Treasury as well.
Also. Ripple-backed multinational payment processor MoneyGram has also announced a new partnership with Suez Canal Bank. The Egyptian bank will now have access to special MoneyGram features which could include Ripple’s On-Demand Liquidity (ODL), which uses XRP. Ripple also has partnerships in the Asia-Pacific Region as well.
The future of payments will also include a lot of offerings that put consumers first. In 2020, Ripple believes that more of these will happen, making even cross-border micropayments a lot easier.
Using tourism as an example, the report says that people who need to make short trips to other countries need to easily initiate transactions there without stress. Emerging technology can ensure that at a tourist’s point of purchase, an immediate cross-border transaction can be initiated from the tourist’s bank account in their own country, to the receiving merchant in the country visited.
Ripple has already planted itself as an important player for cross-border payments. The company now owns more than 9% of MoneyGram’s common stock. MoneyGram is also consistently striking partnerships all over the world, a move that will benefit Ripple. All of these could be a big win for XRP. However, the company is still battling a lawsuit about the proper categorization of XRP.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.