The team at Ripple firmly believes that they disrupt the current traditional system of money transfers.
According to a tweet sent by the CEO of Ripple, it seems that other financial institutions believe that the company is on to something as well.
The tweet announced that the company has signed up three of the most significant money remittances companies in the world and these companies will be implementing Ripple’s XRP token in their payment networks this year. The tweet did not mention these top three organizations immediately.
So far, it seems that after these organizations start using Ripple’s XRP, there will be a total of five institutions that utilize the XRP token.
Most of the other 90+ clients that have signed up with Ripple are utilizing their xCurrent product which serves a messaging service which does not use their token.
“Over the last few months I’ve spoken with ACTUAL banks and payment providers. They are indeed planning to use xRapid (our XRP liquidity product) in a serious way.”
Today’s Payments system vs. Tomorrows and Ripples Vision
Ripple is doubling down on their vision and seeking to make it come to pass.
They believe they can improve payment systems because “today’s payment rails don’t cut it.”
The company states on their site that, “in a world where three billion people are connected online, cars drive themselves and appliances can communicate, global payments are still stuck in the disco era.
Why? Because their payment infrastructure, the underlying foundation that is used to send payments was created before the internet and has only seen some minor updates since then.
What exactly is the problem with today’s payment system? Well, it takes what feels like forever to settle, 3-5 days. There is a significant portion of failures in the settlement. The experience is overall poor, in an era where convenience is king. There are increasing costs, at the current time frame, there are at least 1.6 trillion in yearly costs in this sector.
Ripple seeks to take these flow of payments and transactions into the present era with the efficiencies and improvements that the internet and other technological advancements provide.
The Ripple Solution
They are seeking to do this by their RippleNet.
The company states that Ripple will facilitate the interaction and connection of banks, payment providers, digital asset exchanges and corporations through the platform of RippleNet to provide a convenient and frictionless manner, allowing money to be sent across the globe.
They are working to bring improved speed, access, certainty, and costs across the field. The aspect of access allows for connectivity across payment networks. Speed provides for instant on-demand settlements, and certainty paves the way for the real-time traceability of funds, while decreasing costs across the entire process.
The firm seeks to make this vision come to reality via their blockchain technology that is built with scaling, security, and interoperability in mind. This aspect of built to scale, if proven to be in full working order, would differentiate Ripple from the pack, as Bitcoin and Ethereum are looking to refine their scaling issues.
Their Blockchain technology provides optional access to their scalable and digital asset for payments, XRP.
Now, this aspect of optional access is one of the points that give some investors concern, they wonder, can Ripple succeed and still deploy their platform and provide their solution without XRP being used? If this is the case, this means that XRP might not have that much real value in the future while the company, Ripple, can continue to increase in value as they bring on more banking customers.
As noted above, Garlinghouse is aware of these concerns and is looking for more ways to increase adoption of their XRP token.