Mastercard has recently recognized Ripple for its advanced technology solutions that have greatly facilitated cross-border payments. As part of its efforts to diversify its business, Mastercard has introduced modern technology that allows for the digitization of payment solutions, leading to new business opportunities in collaboration with Ripple.
A recent report published by Mastercard highlights Ripple and its XRP remittance solutions, focusing on the future of remittances in Latin America and emphasizing the benefits of digitization and partnerships. It is worth noting that Mastercard has been exploring blockchain technology and has formed partnerships with several blockchain-based companies, including Ripple. In addition to their work on a Central Bank Digital Currency (CBDC) on the Ethereum blockchain, it was previously reported that Mastercard and Ripple are collaborating on the development of a groundbreaking XRP debit card that combines traditional finance with digital innovation.
The report by Mastercard draws attention to the remarkable growth in remittances, particularly in Latin America, where they have been growing at an annual rate of 10% since 2014. The corridor between the United States and Mexico has the largest remittance pipeline in the world, with an estimated volume of $65 billion by 2023. This serves as a prime example for identifying key trends and opportunities in cross-border payment solutions.
The report also sheds light on underserved or unbanked communities that are in desperate need of financial innovations. These communities require digital payment solutions in a cash-based environment, with transaction transparency and security, regulatory compliance, loyalty rewards, financial education, and convenience being key factors. The research team recognizes blockchain technology as a clear solution to address these challenges, with Ripple standing out as a novel solution due to its superior technology and payment infrastructure.
Mastercard acknowledges Ripple, Stellar, and Circle for their contributions to faster and more transparent international money transfers. Ripple’s partner, SBI Remit, is specifically recognized for leveraging XRP in cross-border transactions. SBI Remit even launched XRP-based remittance services in three Asian countries in September of last year. Furthermore, Mastercard highlights Ripple’s collaboration with countries like Palau in utilizing central bank digital currencies (CBDCs) to improve payment services.
It is worth noting that this is not the first time Ripple has received such recognition. MoneyGram has previously stated that Ripple is the best remittance platform, and other notable entities such as the National Bank of Egypt, the Qatar National Bank, and SBI Holdings have all partnered with Ripple to enhance global cross-border payments.
Mastercard sees a tremendous opportunity in digital remittances, with the market projected to reach $550 billion by 2026, growing at an annual rate of 8%. Meanwhile, Ripple anticipates a staggering $250 trillion market for cross-border payments by 2027. Through collaboration and leveraging the capabilities of XRP, both companies are well-positioned to capture a significant share of this flourishing market.
