Global bank payments network Earthport and San Francisco-based Ripple Labs have formed a global partnership, which will see the two companies combine expertise and technology to offer real-time cross-border bank payments.
Earthport’s offering will integrate the Ripple protocol – described as ‘an Internet for money’-alongside its payments network and platform. The partnership is described as bringing a wider choice to financial institutions, in particular to optimise their liquidity management and minimise the need to pre-fund a payment account while executing cross-border transactions.
“Growth in international trade, e-commerce, and demographic shifts in population have driven both corporate and consumer demand for faster, cost-efficient, reliable and transparent cross-border payment solutions,” state the companies. “Earthport has been strategically developing its global payments network, platform and compliance processes to provide its clients a robust, secure and efficient cross-border payments solution.
“Ripple’s pioneering payments protocol allows for the secure transfer of funds in any currency in real-time with no reserves required. This partnership brings together the Ripple protocol and Earthport’s global network to provide clients with a friction-free cross-border payments solution with reduced liquidity management costs, while maintaining the robust standards of compliance that regulators expect.
“We constantly evaluate new technologies to reduce costs and delays associated with global bank payments for our clients, but require these innovations to meet our high, exacting standards for compliance,” said Hank Uberoi, chief executive (CEO) of Earthport.
“Ripple is a new technology and, once integrated in our payments service could bring benefits in efficiency and speed to global transfers. Earthport will apply its existing compliance framework, rule sets and secure payments network to any Earthport clients transacting using the Ripple protocol.”
“Traditional cross-border payments are inefficient today because both the technology and compliance frameworks underpinning them were built country by country decades ago,” said Chris Larsen, co-founder and CEO of Ripple Labs.
“The Earthport and Ripple partnership brings together the leading global payments and technology infrastructures to immediately transform and modernise the global payments industry.”
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
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