Banking halls and tellers can sometimes be intimidating and fascinating at the same time. The long queues and paper work seems to be headed to oblivion thanks to blockchain technology and interoperability. Ripple (XRP) and Western Union partnership is poised to change the financial industry for the better.
For the last few months, Ripple has been rocking the banking industry in search of partnerships in the sector and the bait seems to have settled on some major catch; Western Union. This might lead to a major but anticipated disruption in industry. Money transfers services have always been seen as slowing down hoe businesses are done.
Ripple (XRP) money transfer function is currently what is driving the network accounting for the larger percentage gain in 2017. With the vibrancy in the money transfer sector, Ripple seeks to partner with other players to speedup financial deals with a value proposition of lowering their costs significantly.
XRP Test Run by Western Union
Ripple knows that their partnership success with Western Union is based on seamless transactions between various systems. Ripple CEO, Brad Garlinghouse hinted in January that three major money transfer processors are will run tests on Ripple and test the XRP utility. This is a clear indicator that the disruption of the industry is in the offing.
MoneyGram was the first to run the test and Western Union as also come on-board. These are pilot projects that are envisioned to give a boost to XRP ability to process payments. This partly explains why Ripple price has not stabilized since enthusiasts are yet to feel the ripple effect of the partnerships.
The Multi Million Industry Disruption
The goal behind Ripple (XRP) is first to be part of the multimillion currency processing industry and gain trust from existing users and investors. The tag phrases for XRP are speed, cost saving and reliability feature that Ripple rides on. The platform uses the latest technology to disrupt the sector and revolutionize the way money is circulated globally.
System integration and information sharing are some of the obstacles that may slow down the partnership process. However, Western Union and MoneyGram seem to be comfortable with the progress so far. There are fears that Exchanges might come up with a clone system that allows you to buy Ripple, change it to the currency of choice and send using blockchain technology. Ripple seems to focus on market niche that is obsessed with money orders.
How id Ripple Fighting the Doubts?
With the progress so far, there is a lot of trust between the three players; Ripple, MoneyGram and Western Union. These efforts are meant to satisfy consumer needs and also benefit from the money transfer boom. However, these partnerships are not being done in a vacuum; the crypto-sphere industry is murky and can use manipulative tactics at times.
Brand erosion, hacking and user misinformation are the order of the day and this could pose a major challenge for Ripple XRP, Western Union and MoneyGram success. The competition might not take it lying down and can penetrate the partnership using their loyal exchanges and vendors.
The way forward for the partnership is focusing on a bright future, a virtue Ripple, through their CEO, Brad Garlinghouse seems to emphasize. With so much deceit and fraud, it might take a while before a hassles-free, tamper-proof and seamless system is arrived at in the banking sector.
Ripple (XRP) Keeping Its Cards Close
As much as there are peopleagsinst the project, Ripple has tried as much as possible to keep close tabs on the achievements. Many investors and stakeholders feel the partnership is a ploy to cover-up the state of falling XRP.
Ripple has, to this front, stated anonymously that no bank wants to sign up for the deal. However, from the developer point of view, much of what is happening is under wraps. This is a real world utility venture and should be carefully guarded. This could explain the lack of activity on XRP trading; investors are waiting for the right time to come on-board.
Although the Ripple (XRP) and Western Union partnership is still in the pilot stage, it has to be accepted that Ripple offers the best platform and environment for the banking sector. Secondly, Ripple is fast, secure and affordable. You cannot compare SWIFT and Bitcoin with Ripple in the money transfer sector, Ripple will thrive due to speed and cost.