Ripple has been in the news recently for positive strides in the crypto and blockchain industry. Recently, a London based remittance firm, Xendpay, partnered with Ripple to make the process of cross border remittance easier for its customers. Now, DBS bank, the largest bank in South Asia, has released a report that shows that Ripple outperforms Swift. The report also showed that Ripple is the cheapest cross border remittance service.
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Ripple offers the most cost-effective method of transfer
This report ranks all traditional forms of transferring money internationally and domestically. The report also mentioned SWIFT in international payments and stated that the remittance service had the most expensive service. ACH transfers took second place on the list of most expensive services while Ripple shined as the cheapest transfer method.
According to the report:
“Normally, corporates try to minimize the cost of payments. All else being equal, domestic payments will be cheaper than cross-border payments, and this is a driver for IHB and cross-border ACH”
The report placed the preference for domestic payments from the most expensive to expensive and cheap to cheapest. RTGS was the most expensive, while cheques were rated as expensive. Fast domestic payments were ranked as cheap with ACH as the cheapest.
Usually, cheques are free because they do not come with fees from the bank. However, corporate handling costs often make them more expensive than they should be. As time passes, immediate payments will take the place of ACH and it will become free.
When it comes to cross border payments, the report ranked the order as follows:
Most expensive – SWIFT
Cheap – Cross border ACH
Cheapest – Ripple
The focus is on xCurrent
So far, the report has focused mainly on the xCurrent payment system of Ripple. this offering is built to be a lot faster and cheaper than its competition; SWIFT. Also, the report analyzes the crypto industry comparing the benefits and drawbacks of cryptocurrencies when compared to fiat money.
According to the report:
“Only cryptocurrencies are not backed by central banks, which is a source of many attractions and considerable risks. Since the end of the gold standard (variously in 1931 and 1971 for the USA), central bank money is what is called fiat money, it has value because the government says it has and because (in most markets) we choose to believe its value. This is why inflation is so feared. Cryptocurrencies do not have any authority behind them, so their value is purely a matter of market psychology, resulting in volatility.”
Read the full report here.
Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.
