- Ripple revealed further details of joining RMG as the first member from the Distributed Ledger technology sector.
- Ripple will contribute its experience in using the ISO standard to shape the future of cross-border payments.
Marcus Treacher, Head of Customer Success for Ripple (XRP), provided further details on the addition of the payment solutions company to the Registration Management Group (RMG). Ripple focused on Distrubuted Ledger technology to become a member of the body, news of its addition was released a month ago on May 6th.
ISO 20022 was developed by the Technical Committee of the International Organization for Standardization (ISO) and is a uniform standardization approach (methodology, process, repository) to enable communication and interoperability among all global financial organizations. ISO 20022 is intended to be a central dictionary of business items used in financial communications and to link existing legacy financial systems.
Ripple (XRP) shapes the future of cross-border payments
ISO 20022 has been adopted in 70 countries and it is estimated that 87% of global financial transactions will be made with this standard from 2023. Therefore, the implications for Ripple are positive. The company will have access to a single prorgamming language for all its financial communications. In addition, Ripple will have support for “specific financial processes” and greater operability to work with other existing protocols.
Treacher said Ripple’s membership will also bring benefits to its 300+ customers. The company will be able to provide them with advice and services based on its extensive experience using the standard. Treacher also noted that Ripple will be able to contribute to the evolution and adoption of ISO 20022 in the future:
Ripple and our customers on RippleNet are pioneers using ISO 20022 for cross-border payments—adoption of ISO 20022 for domestic ACH and RTGS payments has become widespread over the past 10 years, but so far its use by others has been limited in cross-border payments.
Ripple’s Head of Customer Success added that the cross-border payments industry still has potential that will be realized as adoption increases. In that regard, Treacher added:
To ensure this shift delivers its full potential, the payments industry must work to continue to drive ISO 20022 adoption. Ripple is in a unique position to help its customers take full advantage of ISO 20022 standards, advising on topics related to messaging and integration, so that customers can simplify the deployment and further reduce operational overhead on RippleNet.
Ripple’s CEO, Brad Garlinghouse, revealed his intentions to increase transactions by 600% and its customer base by 30 to 40% during the current year. Joining ISO 20022 is an additional endorsement for the company and could be a driver for the adoption of Ripple’s payment solutions, such as On Demand Liquidity. This solution has made a recent shift in focus and will concentrate on smaller micro payments with the expectation of increasing the frequency with which customers use its services.