B2B Payments

Axis Bank Pulls Ripple Into X-Border Payments Efforts

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India’s Axis Bank spent much of its time last year exploring how to streamline cross-border payments, and reports Monday (Jan. 9) suggest the priority will continue into the new year — with a focus on blockchain.

According to reports, Axis Bank, the nation’s third-largest bank, revealed it will use the blockchain-based payment network of Ripple to facilitate cross-border transactions. Reports noted that the move means Axis Bank can provide real-time settlement of those payments.

“We are committed to using innovation in technology to make banking simple and convenient for our customers,” the bank’s managing director, V Srinivasan, said in a statement.

Axis Bank partnered with Earthport last November in another effort to streamline international transactions. Last year, Earthport received approval from the Reserve Bank of India to operate in the country and can enable outbound transactions for Axis Bank through their collaboration.

But the use of Ripple takes Axis Bank’s international payments initiatives into a new realm of using distributed ledger for cross-border transactions.

“Given its status as the fastest-growing major economy in the world and the top market for remittances, India is a very important market that is ripe for payments innovation,” said Ripple Chief Executive Brad Garlinghouse in another statement.

Indeed, India has become a hotbed for cross-border payments and blockchain-based transacting. Yes Bank announced last week that it would be exploring the use of distributed ledger technology for supplier financing, while Axis Bank’s top rival, ICICI Bank, said last November that it would partner with Emirates NBD to develop a blockchain network for both trade finance and cross-border transacting.

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