Santander to Launch Ripple-based Money Transfer App This Spring

Spanish giant hopes to be the first retail bank to offer cross-border payments based on blockchain technology

by Coins.Online
25 March • 2 min
In News

Spain-based global banking group Santander plans to launch an international money transfer app using the blockchain technology of California-based Ripple, Business Insider reported on Saturday.

“This spring, if not one beats us to it, we will be the first large retail bank to carry out cross-border payments at scale with blockchain technology,” Santander UK CEO Nathan Bostock was quoted as telling the International Fintech conference in London on Friday.

Ripple’s Blockchain-based solution provides easier, faster and cheaper money transfers as compared to traditional bank transactions and money transfer services.

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In January, Santander said it expects to launch Distributed Ledger Technology (DLT) based payments for individuals in the first quarter of 2018, providing full transparency on fees. The app would be available first in Spain, Brazil, the UK and Poland. In the long run, it will target the EUR 10 billion global market for international payments.

Santander’s relations with Ripple date back to 2015, when its fintech venture capital fund Santander InnoVentures invested USD 4 million in the Californian startup as part of a USD 32 million Series A funding round. It contributed also in a USD 55 million Series B financing in 2016. Moreover, the Spanish bank has tested a Ripple-based international payments app with its staff.

Ripple’s enterprise Blockchain network RippleNet has already gained international recognition with more than 100 banks and financial institutions as members. Earlier this year, Ripple sealed partnerships with major global money transfer services Moneygram and Western Union in a move that is set to enable people send cross-border payments quicker and cheaper. One of the largest money transfer institutions in the Middle East, UAE Exchange, has also agreed to join RippleNet.