RippleNet: Bringing Instant Remittances To Japan
Since the dawn of man, there has always been a desire to provide for one’s family in the most efficient manner. Today, it means workers have to strike out of their native countries to find better-paying jobs. In 2017, there were 1.28 million foreign workers in Japan.
Most of the workers are the primary providers for their families back home. This makes remittances an important lifeline for the families back home. However, an archaic system for international payments can inflate time, hassle, and cost. This is a system that was created decades before modern technology, and it has changed little since.
The Current Challenges
For over 45,000 Thais working and living in Japan, a single transfer could take numerous trips to the bank. A single transaction often takes up to 12 hours. Even worse, the lack of clear communication within the existing wire transfer services means workers cannot tell when a transaction is complete. For the families back home, they are just one mistake away from a financial disaster.
The RippleNet Solution
Various banks in Japan have adopted the RippleNet solution. This will allow workers to send the needed cash in a fast and affordable manner. One example is the partnership between Siam Commercial Bank and SBI Remit. The partnership uses RippleNet to power remittance payments instantly for Thais living in Japan.
Thai workers can open their SBU Remit account online and link it to a Thai account at SCB. Once they get the SBI card, they can visit ATMs and deposit cash, which is posted in real time to a Thai account.
With RippleNet, money is deposited in JPY in an ATM is Japan and withdrawn in RHB in Thailand in seconds. Besides that, the fees for RippleNet are much lower compared to the archaic system of finance.
The RippleNet messenger API will enable SBI Remit and SCB exchange data on the customer, the rates, fees, and expected time of delivery. This will let workers and recipients know the cost and delivery time before money is sent.
Beyond the obvious benefits of cost, speed, and certainty, the banks may add new lines of revenue while gaining customer loyalty. SBI completed the implementation of Ripple in just 3 months. Right now, it is the largest money transfer services provider in Japan. It has a monthly payment volume of 10 billion JPY. SBI wants to build on the success of their remittance service and the popularity of instant transfers. To do this, it will expand its partnership with Ripple via the Japanese Bank Consortium.
The consortium comprises of 61 members and covers nearly 80% of the Japanese banking sector. It recently unveiled a mobile app that is powered by RippleNet known as MoneyTap. It lets customers of the member banks of this huge consortium make instant transfers domestically.
Whether for international or domestic instant transfers, the implications of using RippleNet are huge. For those working in Japan and their families back home, this technology is changing lives.