Western Union looking into Ripple for cross-border payments

International money transfer firm Western Union is studying and deliberating the “payments-as-a-service” (PaaS) model that Ripple (XRP) currently implements.

Global payments have continuously grown in the previous years.

The 2020 American Equity Research by Credit Suisse revealed that Western Union is studying and considering the use of XRP in its cross-border payment service.

According to the research, Western Union is deliberating whether Ripple’s platform can help them provide quicker settlements and cheaper processing costs for international payments.

Crypto adoption in PaaS: weighing the pros and cons

The research added that cryptocurrencies are unlikely to gain cross-border payments adoption “at least for the medium term.” Challenges such as “acceptance risks” and “taxable events” remain.

Nevertheless, the research still agrees that some innovations arising from cryptocurrencies such as cheaper transaction costs and faster settlements “could alleviate some of its drawbacks.” This is important especially when it is compared with traditional payment infrastructures such as SWIFT.

Platforms like Ripple have the “potential to reduce settlement times from days to seconds,” the research adds.

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Source: Western Union looking into Ripple for cross-border payments | Micky