Ripple, with its worldwide RippleNet network, will be an opportune way for Currencycloud to reach more financial institutions.
The press release says Currencycloud recognizes the need for fast, secure payments during the global crisis. Globalization, the release notes, is usually easier for the bigger traditional banks. But Currencycloud and Ripple want to change that with their partnership, which will most likely focus on areas of the world where smaller businesses aren't awarded the same kind of representation.
In that event, the release says the partnership will focus on allowing those small businesses to process local payouts and collections.
Ripple has been working on expanding its cross-border work. Last year, RippleNet reached over 200 subscribers to its network. Ripple's goal is to establish a blockchain-based, much faster settlement time for payments, as opposed to having them go through an older system like that of SWIFT.
But the long-term viability of the strategy, PYMNTS notes, will depend on faith in cryptocurrency, a sometimes-volatile form that has only recently begun to enter the mainstream.
Currencycloud chief executive Mike Laven said the idea was based on “bringing clarity, speed and value to the traditionally opaque, costly and time-consuming issues associated with cross-border payments, particularly for SMEs that have historically been under-served by traditional banking.”
“Ripple’s solution will help us to extend our network to new parts of the world, removing more barriers to payments for our clients,” he said, according to the release.
Currencycloud also recently partnered with FinTech firm Derivative Path in order to provide banks with more of a full-scale, end-to-end solution for B2B payments. In that instance, the platform, called DerivativeEDGE, allowed users a full front-end and back-end experience all in one app, and included an app for hedge accounting.
Derivative Path CEO and co-founder Pradeep Bhatia said the agreement would be useful for banks in need of a platform for FX and payments management.