UAE Exchange joined the RippleNet network in effort of speeding up the processing of remittance transfers across the Middle East and Asia.
“Incorporating Ripple’s blockchain technology into our payments systems will bring customers an enhanced, new payments experience.The early adoption of this game-changing technology allows us to offer a competitive service, as it will have an impact on the speed and cost of cross-border transactions,” Promoth Manghat, chief executive of UAE Exchange Group, said in an official statement.
Dilip Rao, Global Head, Infrastructure Innovation, Ripple, added, “We chose to focus on solving inefficiencies in key corridors where payment flows are significant and growing. Adding a market leader like UAE Exchange to RippleNet will bring instant, certain, low-cost payments to the millions of retail customers in the UAE who send money abroad.”
Exclusively for Arcane Bear, Nikola Kosutic, senior research manager from Euromonitor International explained that UAE has one of the World’s highest share of expat population and Government is committed to establish UAE as the global leader in terms of new technologies adoption. “Therefore it is not surprise that Ripple stroke this major deal with UAE Exchange – country’s leading foreign exchange and remittance company, adding to the list of existing UAE clients. Remittances from UAE are estimated at 45 billion USD in 2017 and bank and exchange houses collect estimated 300 million USD in transaction fees. UAE remittance markets is very competitive and fees are amongst the lowest in the World so implementation of Ripple, which slashes transaction costs to close to zero and allows for instantaneous transfer rates can add few hundred million dollar of value to the economy split amongst cost savings for the exchange houses, higher consumers’ disposable income and unlocked liquidity,” said Kosutic.
UAE Exchange, whose owner also owns Travelex, said they control 6.75 percent of the $575 billion remittance industry and are hoping to have at least 10 percent by 2020. Currently, the UAE Exchange has 800 branches spanning 30 countries.
The deal represents a very good thing for Ripple, which has faced some problems in recent weeks. In December of last year, XRP rose to $3.65 but the prices kicked off 2018 in the worst way, losing more than 44% in under a month. The sell-off began as a reaction to trouble on the Korean peninsula. But it was made worse by a Bloomberg Businessweek report, which said that Ripple’s corporate partners had no interest in XRP. Now, the dust is settling, volatility is easing and markets are returning to normal. Currently, Ripple is valued at $1.06 at time of the writing.