Blockchain payments company Ripple has partnered with Qatar National Bank (QNB) to improve cross-border payments and launch a new remittance platform, Ripple announced on Tuesday.
Fast facts
- QNB will pilot RippleNet, a network of banks and other payment companies developed using Ripple’s technology, with QNB Finansbank in Turkey as part of a group rollout, the statement said. There are plans to expand Ripple’s solution to other significant remittance corners in the future, according to the agreement signed by both parties. QNB is the largest financial institution in the Middle East and Africa with affiliate companies operating in over 30 countries.
- QNB will leverage RippleNet to improve cross-border payments efficiency and expand its remittance business across other countries. The partnership will enable near real-time payments to QNB clients, statement noted.
- Ripple has been endeavoring to develop partnerships and use cases for its blockchain technology ever since it got embroiled in a lawsuit with the U.S. Securities and Exchange Commission. Last month, the company announced a partnership with Bhutan’s central bank that will use Ripple’s central bank digital currency Private Ledger to pilot its own CBDC.
- The announcement comes after the central banks of Singapore and Malaysia joined last week to enable a real-time cross-border payment transfers through a mobile number starting next year. In August, Singapore’s Maybank and the central bank of Cambodia launched a real-time funds transfer service between the two countries.
- The cost of international remittances is 6.38% of the amount sent, according to World Bank data. Moreover, international bank transfers usually take days. With more and more families depending on income sent by migrant workers, improving the efficiency of cross-border payments has become a top concern for banks.