SWIFT is testing Ripple’s technology for payment processing

  • SWIFT, a global payment service provider, is testing Ripple software solutions to make transactions faster and more efficient.
  • However, SWIFT does not specify which Ripple product it is using (xRapid, xCurrent, or xVia).

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a telecommunications network for cross-border payments with services used by more than 11,000 banks worldwide. In this context, key factors such as the size of the fees, the transfer time and the participating financial players play an important role.

SWIFT is constantly striving to test new innovative technologies, such as the blockchain, and to identify its opportunities and risks for its own company and pilot them in long-term tests. Only when a product has sufficient experience can it be published in a particularly sensitive market, such as the financial market.

According to an official Arab Times announcement, SWIFT has announced that it is currently testing Ripple’s technology. SWIFT also reports first positive results and practicability.

SWIFT tests Ripple – Is XRP ready for the mainstream?

The American company Ripple provides software solutions for small and large companies that enable cross-border transfers to be processed in seconds at a particularly low cost. For the transfer of several million USD, transfer fees of a few pennies are charged. In contrast, a traditional SWIFT transfer of $500 from Canada to Australia quickly costs $10 or more.

Ripple offers a total of three different payment solutions that differ in one important aspect. Only xRapid actually uses Ripple’s native token, XRP, for transfers. xCurrent and xVia offer similar benefits, but without XRP. The current release does not discuss which product SWIFT is actually testing.

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However, according to the report, SWIFT is very pleased with the speed and costs involved. However, SWIFT is concerned that Ripple is not yet ready for the mainstream so far. However, the company does not give any precise reasons for this, as the Arab Times reports:

Swift, the bank-owned messaging system used for the settlement of international payments, has been testing Ripple to settle payments and has so far been pleased with its speed and lower cost. However, it said that the technology is not yet ready for mainstream use.

Can the XRP price benefit from it?

Ripple has already attracted many of the financial industry’s most prominent heavyweights to pilot Ripple’s payment solutions. The majority of the testing companies, such as Santander Bank, MoneyGram and now SWIFT, are very satisfied with the performance. However, whether the price of XRP can benefit from this remains to be seen. The price of XRP is USD 0.2667 at the time of writing and is the only cryptocurrency within the top 20 to record a rise (+4.09%).

About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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