Blockchain Industry

Banco Santander to Debut International Payment System on Ripple

Thomas Delahunty | February 2, 2018 | 11:30 pm
santander
Blockchain

Banco Santander to Debut International Payment System on Ripple

Thomas Delahunty | February 2, 2018 | 11:30 pm

Banco Santander has set a Q1 2018 launch date for the introduction of same-day, mobile, international payments for customers, which will operate using blockchain technology on Ripple’s distributed ledger. For banks, the benefit of using Ripple is that it can enable the transfer of data and value in a more accurate and much faster way — as little as four seconds, compared to three days with the current model SWIFT.

Santander plans to introduce the service in four countries simultaneously and promises full transparency on fees and FX upfront. “We expect to be one of the first global banks to roll out a distributed ledger, technology-based payments for individuals,” the bank told analysts. In November, the UK arm of the bank also announced plans to work with American Express to use Ripple’s technology for cross-border, business-to-business payments.

The process began 18 months ago when the company began an assessment, running a proof of concept with Ripple which it rolled out to staff in app form as a way of emulating the customer experience. The app was tested with Apple Pay for payments of between £10 and £10,000 using Touch ID for secure sign-in. According to the company, security and regulatory compliance are central to all activity, therefore the app has undergone the same rigorous testing that all new technology goes through ahead of the roll out.

The choice to go with Ripple, according to an interview (here) with Ed Metzger, Head of Technology Innovation at Santander UK, revolved around the uncertainty and transparency associated with SWIFT. According to Metzger: “We chose Ripple because of its speed, transparency, and certainty. [Because] these three characteristics provide relief to the pain points of international payments.”

Chris Larsen, Chief Executive Officer at Ripple had the following to say: “Ripple is redefining the way that value moves around the world, and today we’re already enabling real-time, affordable, international settlement between banks who have adopted our solutions. He continued: “As an early adopter and pioneer in the banking industry, Santander is the first bank in the world to transfer real funds externally. In doing so, they are creating a new, exemplary standard of service.”

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  • Rene

    Finance minister stresses need for cooperation with China over blockchain technology

    2018/02/02 15:13

    BEIJING, Feb. 2 (Yonhap) — Finance Minister Kim
    Dong-yeon said Friday that South Korea needs to cooperate with China
    over blockchain technology, a burgeoning digital cryptography that
    enables data sharing among individual computers.

    Kim made the
    remarks as he visited Zhongguancun, a technology hub in Beijing, ahead
    of talks with his Chinese counterpart, He Lifeng, chairman of China’s
    National Development and Reform Commission, later in the day.

    Finance Minister Kim Dong-yeon (L) visits Zhongguancun, a technology
    hub in Beijing, on Feb. 2, 2018, in this photo provided by the Ministry
    of Strategy and Finance.

    While checking out
    technology innovations at Zhongguancun, Kim also introduced South
    Korea’s efforts to emulate Silicon Valley style and innovation by
    expanding its own technology hub in Pangyo, near Seoul.

    Seoul’s top economic policymaker recently unveiled a plan to expand a
    second startup complex in Pangyo in a bid to further boost promising
    local startups and attract foreign companies.

    The “2nd Techno
    Valley” in Pangyo is designed to nurture some 1,400 startups, offering
    workspace and consulting services for funding at cheap prices, according
    to the finance ministry.

  • Anonymous

    XRP is the future.

    • Sean

      Except the bank isn’t using XRP. It’s using ripples xCurrent product. Oops you bought the wrong one.

      • Anonymous

        XRP is the future.

        • Sean

          I hope it’s the future because right now I can 25 better ones.

          • Gravy train

            Even if they use xcurrent, xrp is being burned. Xcurrent is approx 30% savings vs. xrapid (with xrp) 60%. Like annony said. Xrp is the future!

          • Anonymous

            You must be illiterate.

      • sunit

        bro u shud concentrate on so many other things that bothers ur life than wasting your time criticizing on stuff that doesnt matter to u. Go get a job!!!

        • Sean

          The adults are talking about investments, go away.

  • Sean

    So let me get this straight. Ripple sold everyone XRP but sells the banks xCurrent and hope banks use the more public XRP in the future. Sounds unlikely.

    • John

      Yeah, It seems far fetched. Banks have to go through a lot of regulatory hurdles I don’t think they would be interested in waging a war with the government just to use XRP. Sounds like this bank is just doing a free test with Ripple to get some blockchain buzz.

      • Gravy train

        Sean and John, banks have the government in their back pocket. Everyone knows as long as is companies can make money (or save money and is safe) govt is going to support it. Second as I explained earlier, companies are timid to new tech so baby steps and testing is the way to go. Xcurrent without money to test systems then xrapid when they realize the system works and the 60% total savings realize. Easy math.

    • sunit

      bro u shud concentrate on so many other things that bothers ur life than wasting your time criticizing on stuff that doesnt matter to u
      go get some job!!

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