American Express and Satander UK will try a new cross-border payment system for business through Ripple blockchain.
According to the announcement of American Express (Amex) on November 16, 2017, its partnership with Satander UK will use a blockchain system through its FX International Payments (FXIP) arm to expand its business-to-business cross-border payment system.
The global head of Satander Global Transaction Banking Jose Luis Calderon broadcast the goals of the collaboration:
“WE ARE COMMITTED TO CREATING A LEADING INTERNATIONAL PAYMENT ECO-SYSTEM MEETING THE NEEDS OF COMPANIES AND CUSTOMERS WORLDWIDE.”
The blockchain solution is a corridor between the US and the UK which will present a significant opportunity for payments globally. The partnership with competitive businesses played an important role to deliver cutting-edge, secure, and friction-free payment solutions. It also became a way to extend their straightforward philosophy to Amex and their customers.
As mentioned previously in RippleNet, the role of Satander UK will be to initiate the transaction channel which according to Amex “has the potential to expand substantially over time.” To reduce settlement costs for non-card payments and provide “immediate end-to-end visibility into the transaction status and cost,” Ripple established an agreement with FXIP.
The executive vice president and chief information officer of Amex Marc Gordon said the partnership with Ripple and Santander constitutes more significant steps on their blockchain journey and improving the way money is being moved around the world. He also outlined the collaboration and the company’s interest in modern technologies.
“AMERICAN EXPRESS HAS A LONG HISTORY OF INTEGRATING NEW TECHNOLOGIES INTO INNOVATIVE PRODUCTS AND SERVICES THAT DIFFERENTIATE AND ENHANCE THE CUSTOMER EXPERIENCE.”
Once the system proves its success, it could lead to a new wave of blockchain platform and other prominent financial institution’s mass adoption. Project Ubin and Project Jasper are just some who already engaged in similar public pilot tests.
Executive vice president of Amex’s Global Corporate Payments Greg Keeley said they discovered the emerging marketplace of the blockchain technology:
“We’ve already seen evidence that blockchain technology is playing a transformational role in the way customers are served.”
Keeley also described Ripple as a companion to improve the length of time spent to process international transactions and make it more efficient to their customers as he talks about the benefits of working with Ripple.
Brad Garlinghouse, CEO of Ripple, assured everyone that together with Amex, they are taking considerable steps to solve the problems of corporate customers with global payments. They would make it possible to complete transfers that usually take days to be achieved real-time by allowing money to move as fast as the business today.
Garlinghouse ended with a promise:
“IT IS JUST THE BEGINNING, AND WE LOOK FORWARD TO GROWING THIS PARTNERSHIP TO HELP OTHER AMERICAN EXPRESS FXIP CUSTOMERS.”