Ripple reaps benefits of payments focus
Ripple has come to be the dominant name for payments in the distributed ledger (DL) space, thanks largely to the decision to consolidate its efforts.
The company seems to have become the go-to for payments for financial institutions and tech providers alike, with a number now working on pilots.
Speaking about Ripple’s dominance of the payments space last year to a senior officer at a tech company, Euromoney asked if there was a reason Ripple had been able to establish working relationships with so many banks and tech companies over and above other DL competitors. The response was “good marketing”.
Although this might play a part, it is slightly disingenuous. The company has focused its attention on payments, separating it from other DL providers that have looked to explore a wide variety of different use cases for the technology.
Marcus Treacher, head of strategic accounts at Ripple, says the company decided early on that it would focus its attention on one area of business.
“The aim was not to be the new PayPal," he says. "We have shown the value of the service to the banks and finance companies of how our blockchain offering can help them to do business.
"Our clients are the banks and the payment service providers (PSPs). They use Ripple for cross-border payments, bypassing the traditional payments methods to send and receive funds in seconds."
Treacher adds: “We focus on creating real, workable products using our blockchain technology. Banks have specific challenges and we look to solve those problems. It is not just a question of creating hype – the products have to work and be productive.”
Standard Chartered has worked on two pilots with Ripple, developing TradeSafe to improve the security of trade-finance invoicing, and executing real-time cross-border payments with a correspondent bank.