According to a post made by crypto influencer, Cory Johnson on Twitter, Mastercard’s decision to purchase Nets will likely be to Ripple’s advantage. Per the report, Mastercard purchased the Denmark based payments network for a whopping $3.19 billion. Now, Johnson who is also a former chief market strategist at Ripple is saying the deal will benefit his past employers.
Johnson: Mastercard Deal Could be More Important to Ripple
The crypto influencer mentioned that even though everyone is anticipating Libra’s impact on XRP, Mastercard’s deal will have a more significant impact on the Ripple Blockchain. Here is the post:
“It is no secret that the XRP community has its focus on the impact of Libra, but the Mastercard deal could be more significant for Ripple’s network. It is validation that real-time settlements is the coming wave.”
Mastercard Inc., a global financial services mogul, is hoping to use Nets to facilitate its operations in the faster payments territory. The American owned multinational corporation typically processes banks settlements between card issuers and merchants. Nets is an electronic billing network that posses instant payment capabilities.
Mastercard Enters Quick Payments Race
It is no secret that the race to facilitate faster payments has gotten a push. For example, The Federal Reserve is looking to create a quicker payments platform for the United States. Hence, the Mastercard acquisition of Nets will move it beyond cards payments processing to account-to-account activities.
Johnson, perhaps because of an NDA, left the majority of crypto fans looking for a link between Mastercard’s acquisition and the Ripple network. Nevertheless, Mastercard and Ripple might actually have an indirect connection. Both firms have invested in SendFriend, a Ripple powered global remittance startup.
Additionally, Mastercard has acquired Earthport. Earthport is an automated clearinghouse and also a partner of Ripple. Now that Nets has it on its side, it is understood that Mastercard is planning to expand Nets’ payments prowess out of its primary market.
Ripple will offer Mastercard on-demand Liquidity
Michael Miebach, who serves as Mastercard’s chief product and innovation officer said:
“Real-time is real, it is here and continues to grow. What we discovered in Nets is that it is a business that is deeply ingrained in the most vibrant and innovative payments markets around the world. Ripple is already a big player in real-time payments.”
Dilip Rao, Ripple’s Global Head of Infrastructure Innovation has clarified that there isn’t any connection between Mastercard and Ripple at the moment despite Johnson’s tweet. Although, the Ripple executive said that XRP is going to give Mastercard’s payments processing model on-demand liquidity.
He said XRP would power real-time cross border settlements as well as crediting beneficiary accounts. Rao acknowledged that Mastercard’s acquisition of Nets is a “good sign” for the Ripple ecosystem. He says the purchase will show that financial institutions all need Blockchain innovations to achieve real-time settlements.
In other reports, Mastercard’s second recent acquisition, Vocalink, brings infrastructure which underpins faster settlements. Vocalink uses in far-flung regions like Saudi Arabia and Peru. The P27 Nordic Payments Platform another of Mastercard’s recent acquisitions has functioned as a real-time, batch payments network in Nordic countries. However, Nets is Mastercard’s most significant recent acquisition so far. The company brings 80% of all revenue acquired from the Denmark and Norway markets.