In collaboration with Ripple, Santander introduces the world's first international payment app that uses the blockchain
Earlier this week, Santander launched One Pay FX, an application that facilitates international payments using blockchain technology. In collaboration with Ripple, One Pay FX was developed to improve the existing payment system and to ensure efficient transaction speeds, low costs and transparency.
Traditionally, an international transaction would normally take three to five days if the exchange rate is not given, so speculation and uncertainty about the total amount of the recipient may arise. In addition, the fee amount may be unknown
One Pay FX Chief Technology Officer Ed Metzger commented:
"The customers told us that they never knew how much money would go to their recipients because it was never clear what the exchange rate would be or what fees would be charged," continued Metzger. “Furthermore, they had no transparency about when the payment would arrive there. They just knew it would take three to five days. This type of feedback is standard across the industry. Nobody solved the problem. "
A blockchain future
In simple terms, the blockchain is a decentralized, distributed general ledger platform. This means that information sent to the blockchain is encrypted using cryptography and shared by all blockchain users. As a result, transactions are tamper-proof and extremely secure.
In a contribution from Team Ripple, they found that app success is not only due to speed, costs or transparency, but rather to "the smooth, simple customer experience for mobile users".
A 180 degree turn
The application achieved excellent results when published. Before this app, consumers could only choose transfer services with higher fees and less transparency. Now the user behavior has changed completely.
"They have so much confidence in the cost-effective process on the same day that sending money abroad is no longer a big deal."
Santanders Posting ends by stating that the blockchain is a basic need of every bank, as it offers competent security, speed and transparency. One Pay FX is currently the first application to provide international transactions using blockchain technology - but may not be the last.