FinTech: Ripple Targets SWIFT in Brazil

January 6, 2020 | FinTech, News

Ripple wants to make inroads into Brazil’s remittances market.

Ripple is a global leader in enterprise blockchain solutions for cross-border payments. It established an office in Brazil in June 2019 as a stepping stone to the vast South American market. It brought in the highly experienced entrepreneur and executive Luiz Antonio Sacco as managing director.

The fintech now wants to expand its relationships with Brazilian banks and regulators to increase and improve its remittance services, according to Reuters Brazil. That’s because demand for fast and cheap remittance solutions is growing rapidly in Brazil.

Swift, the legacy system, is slow and expensive

The lion’s share of international remittances out of Brazil currently uses the SWIFT system. This market amounted to nearly $ 4.6 billion in 2090. Unfortunately, SWIFT remittances can take almost a week to complete and are fairly expensive. In contrast, transfers via Ripple would cost just 10% of the amount charged by banks, says Sacco.

Ripple already has onboard Santander, Bradesco, Rendimento, and other Brazilian banks.  New business relationships with more banks will enable Ripple to take market share faster from SWIFT. “With the successive advances in Brazilian banking regulation to facilitate financial transactions, including at an international level, the opportunities here will grow strongly in the coming years.”

Though most of these relationships currently utilize Ripple’s payment messaging system, the fintech is determined to boost acceptance of its XRP cryptocurrency within the banking system in Brazil and South America. “Our vision is to use digital currencies as a medium of exchange, not as a speculative investment,” says Sacco.

Ripple: fund-raising and investments

Earlier this month, Ripple raised a massive $ 200 million series C funding which it plans to use to grow its customer base by 30 to 40%. It further plans to increase its transaction volume by 600% in 2020.

In November last year, Ripple acquired a $50 million stake in remittance platform MoneyGram. It, therefore, owns just under 10% of MoneyGram’s outstanding common stock and approximately 15 percent on a fully-diluted basis including non-voting warrants. Under the agreement, MoneyGram will utilise Ripple’s products for cross-border settlements.

In October last year, Ripple invested in Bitso, a leading cryptocurrency broker and exchange in Latin America.

Related Story:  Juniper Research: B2B Cross Border Payments to Boom on Blockchain                                                 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: China Tightens Antitrust Regulatory Screws On Fintechs
January 22, 2021     FinTech, Latest News, News, Regulations

The People’s Bank of China published a draft set of rules on Wednesday for anti-trust regulation of the non-bank payment providers in the fintech sector. The draft is in the…
Digital Assets: BlackRock Dips Its Toes In Bitcoin Waters
January 22, 2021     Digital Assets, Latest News, News

Filings out Wednesday show that the BlackRock Strategic Income Opportunities Portfolio and BlackRock Global Allocation Fund may invest in cash-settled bitcoin futures, among other assets. BlackRock (NYSE: BLK), the world’s…
Artificial Intelligence: AI Helping Manage Wind Farms By Forecasting Wind Conditions
January 22, 2021     Artificial Intelligence, News

AI is playing an increasingly bigger role in the management of wind energy, wind farms, and the maintenance of wind turbines through machine condition monitoring systems. Google (NASDAQ: GOOGL) predicts…
Alternative Investments/ESG: Harvest Portfolios Launches The Harvest Clean Energy ETF

Harvest Portfolios Group Inc. completed last week the initial offering of Class A Units of the Harvest Clean Energy ETF (TSE: HCLN). The units of the ETF commenced trading on…