UAE’s retail and business bank RAK Bank partnered with Ripple for instant cross-border blockchain payments.
RAK Bank aka the National bank of Ras Al-Khaimah is plugging into Ripple’s real-time payment network ‘RippleNet’ to power live retail remittance payments to customers in Axis Bank, India.
Earlier this year Axis Bank which is the third largest private bank in India joined hands with San Francisco-based fintech firm Ripple for blockchain-powered cross-border remittances.
“While there have been significant innovations in domestic payments, cross-border remittance has seen limited developments. Using APIs and distributed ledger technology, there is an opportunity to radically change the way international payments are handled,” said Himadri Chatterjee, Axis Bank’s president of transaction banking.
India holds a massive workforce in UAE, due to which retail remittances between the two countries are growing. These Indian workers send a significant portion of their salaries to their homes every year, which RAK Bank wants to support by introducing a system that is much faster, easier and transparent.
“By using Ripple’s Blockchain solution to power international payments, our customers can now send money home easily and in real time. Joining the Ripple network is in line with not only our Blockchain strategy, but it also allows us to expand our remittance footprint,” said RAK Bank chief executive
The Emirates News Agency reported that the bank of Ras Al-Khaimah will launch “instant, frictionless and secure money transfer services” by its RAKMOneyTransfar (RMT) to customers of Axis Bank within “seconds and with end-to-end visibility” of the entire payment process.
Tapping Ripple’s blockchain technology, RAK Bank has joined a considerable number of other regional banks and remittance houses for cross-border payments.
Many banks and remittance operators from the Middle East have acquired Ripple’s services for quick international payments. The National bank of Abu Dhabi integrated blockchain technology from Ripple in February and claimed to be the first bank in the Middle East to go live with blockchain real-time remittance for multiple corridors between the region and Asia. Most recently, one of region’s largest remittance houses, ‘UAE Exchange’ that is expanded across 31 countries, teamed up with Ripple for similar purposes.