The Spanish Santander Bank is known to be one of Ripple Labs' big partners. Santander already uses the ripple solution xCurrent for cross-border payments as part of its own “One Pay FX” app. Now Santander has also launched a new SWIFT solution for cross-border payments. SWIFT is a Belgian-based cooperative bank that transacts foreign exchange remittance and transaction traffic.
The traditional SWIFT system is getting old. Nevertheless, it remains the dominant messaging system for cross-border payments between banks. However, it is also always in the criticism. It is considered too slow, opaque and relatively expensive. Ripple uses these weaknesses to offer its solutions as fast, transparent and cost-effective alternatives. Of course SWIFT does not want to stand idly by and therefore since 2017 has been developing its new system “Global Payments Innovation” (GPI) to support cross-border payments.
The new GPI system, which is in some ways a rival to Ripples xCurrent, Santander now wants to use a large area for themselves. Initially, Santander will be the service provider for transactions in Spain, the United Kingdom, Poland and Argentina.
The announcement on the SWIFT website states:
“With SWIFT GPI, Santander can now offer a fast, cross-border payment service. It also includes real-time payment tracking, transparent bank charges and foreign exchange rates. “
SWIFT also announced that Santander plans to use the services in Chile and Mexico by the end of 2018. In addition, Santander wants to handle up to 80 percent of its cross-border payments by the end of the year via SWIFT GPI. In 2019, the service should then be extended to other countries.
Since the launch of the GPI project in 2017, Santander and SWIFT have been working closely together in a global project. Eva Bueno Velayos, Head of Global Transaction Banking at Santander, said:
“For us, SWIFT GPI is a great way to enhance our clients' international payments experience. The process is faster and more transparent, while at the same time making our internal processes more efficient. We look forward to the subsequent stages to provide the best possible service as part of our payment services. “
A few days ago in the blog I had already reported on a lecture that Santander Innovation Manager, Ed Metzger, had recently given at the 2018 Ripple Swell conference. As part of that, he said:
“We believe that financial services are moving toward a world of open platforms. In this world, companies are working together to provide their customers with excellent customer service. That's what's at the heart of what we do with One Pay FX. “
In the light of current developments, this statement could be read in such a way that Santander wants to take advantage of all the offers that are available, ie xCurrent and GPI. The further development remains to be seen. In any case, with SWIFT GPI, Ripple faces strong competition with 45 years of experience and the world's best networking. Ripple Labs itself was unimpressed by GPI mid-year, calling it a “minor upgrade” to the old SWIFT system. It should also be remembered that Santander has already used the traditional SWIFT system in addition to Ripples xCurrent. This affected all cross-border payments that were not made through the Santander One Pay FX app (and hence xCurrent).
In that sense, the competitive situation is generally not new. Nevertheless, the hitherto inferior SWIFT system is getting ready to catch up with Ripple with its new GPI solution. But also Ripple is not to be underestimated and offers with its new system xRapid many advantages, such as the loss of the nostro accounts that are unloved by the banks.
At the time of going to press, Ripple XRP's share price was unaffected by the trend. However, you must always remember that xCurrent does not build on the cryptocurrency Ripple XRP.
Finally, it's interesting that the ripple team will participate in the upcoming SIBOS SWIFT conference. This conference is the world's premier financial services conference. Sibos is scheduled for October 22-25 in Sydney, Australia. As part of the conference, Ripple plans to present its RippleNet.
Sources: SWIFT, Global Trade Review, Sibos, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/santander-bank-used-neben-ripple-xcurrent-jetzt-auch-neue-swift-loesung/
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