Ripple is an American start-up that was founded in 2012 and wants to support global banks worldwide in payment processing. It is important to distinguish that Ripple is the actual company that launches the cryptocurrency XRP and sells it on the market to investors.
Ripple provides various payment systems that can process cross-border transactions almost in real time at very low cost. Classic transfers from the United States of America to Germany or Australia cost more than $20 for a transfer amount of $50 with the Western Union service, which is far more than 30% of the actual amount. Western Union also tested Ripple last year, but the company wasn’t satisfied with the results.
As Crypto News Flash reported their own money transfer system currently allows 5 times cheaper transfers than using XRP:
„We’ve done a test with Ripple and continue to do tests […] We learn a lot from Ripple, but we have our own referral system that is very cost effective. Today our tests have shown that using cryptocurrencies or stablecoins like XRP is 5 times more expensive than using our own system.“
The performance of Ripple in 2020
Although Ripple has set numerous new records and milestones, the price XRP continues to show a clear downward trend. In October of this year, Ripple exceeded the transaction volume on the XRPL ledger for the entire last year 2018.
In addition, Ripple achieved a new historical record in the number of transactions executed. RippleNet, Ripple’s partner network, has already attracted more than 300 partners who rely on the payment solutions provided by Ripple.
Global payment services companies such as MoneyGram rely on On-Demand Liquidity, the software commercially offered by Ripple. This enables payments to be processed in real time at low cost.
MoneyGram was very satisfied with the results of its work, and many new payment corridors were opened up as a result. Thailand and Australia are planned as new target markets for 2020.
Ripple sells one billion XRP once a month to banks, financial institutions and other major customers. This process is suspected to influence the price of XRP. However, Ripple has vehemently denied such rumors, as Ripple as a company has no influence on XRP and certainly not on the price of XRP.
It remains to be seen whether XRP will show a better performance in the coming months.