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Ripple Has Signed Up A Bank To Use XRP For Payments. So What?

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26 minutes ago, Freaky said:

The bank I work for charges customers $20 for a SWIFT transfer via Internet Banking, and $32 to do it via a branch.

Our cost for standard value transactions via SWIFT GPI is 40cents, that we pay SWIFT.

 

Do you think that those 40c are the total costs of the Xborder payment? :JC_thinking:

Here's the average break down of Xborder payments in general ...

costsXborderpayments.png

Edited by Rey

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12 minutes ago, Rey said:

Do you think that those 40c are the total costs of the Xborder payment? :JC_thinking:

Here's the average break down of Xborder payments in general ...

costsXborderpayments.png

For my bank yes.  Infact when we started our first POC with xcurrent in 2015 , a business case could not be justified as there was negligible savings over SWIFT, and this was revisited during our upgrade to GPI just over a year ago.  

I should have bookmarked things I posted ages ago to be able to refer back quickly. 

The whole nostro thing is the red herring in the room. 

 

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44 minutes ago, invest2lose said:

competition

👆This and it so much more than the transfer fees. It's the time, it's the daily emails from the receiver about when the funds will arrive. The ripoff bank exchange rates..

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33 minutes ago, Freaky said:

The whole nostro thing is the red herring in the room. 

I do not think this can be correct because it’s often used in the sales pitch that Ripple make.  If it was a red herring then there would have been a lot more people calling it out.

Also,  and more importantly,  it would be the dumbest sales pitch ever if the target audience know what you are saying is crap.  

Say what you like about Ripple but I don’t think anyone can credibly call them dumb.

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36 minutes ago, Freaky said:

For my bank yes.  Infact when we started our first POC with xcurrent in 2015 , a business case could not be justified as there was negligible savings over SWIFT, and this was revisited during our upgrade to GPI just over a year ago. 

...

If that's true and the math is correct, maybe your payment infra already is fairly efficient ... did the business case include the costs of settlement? I ask because xCurrent in 2015 as well as SWIFT before and after GPI don't change anything about the Nostro issue ...

And maybe the majority of your xBorder payments involve efficient, low friction, high liquid corridors?

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47 minutes ago, Freaky said:

For my bank yes.  Infact when we started our first POC with xcurrent in 2015 , a business case could not be justified as there was negligible savings over SWIFT, and this was revisited during our upgrade to GPI just over a year ago.  

I should have bookmarked things I posted ages ago to be able to refer back quickly. 

The whole nostro thing is the red herring in the room. 

 

Your account of what happens at 'your bank' is not reliable in the slightest without any source. 

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2 hours ago, Rey said:

Do you think that those 40c are the total costs of the Xborder payment? :JC_thinking:

 

1 hour ago, Freaky said:

For my bank yes.

Right. 

Please give us a breakdown of the internal costs for a cross border payment of your bank. 

Don’t forget the cost allocation of management-, IT-, and other supportive departments or overhead. Truth is that no bank exactly can calculate the costs of any product or service to that level, rough estimations are the best we have. Hell, we are already happy if we can calculate costs at the level of business lines or units, much discussions and different metrics there. 

And even if its 40c, or maybe less, are  you stating that  xRapid or xCurrent don’t offer enough savings?  For your bank or for all 33,000 worldwide?  

“ I know someone who smokes 30 cigarettes a day and has reached the age of 92 last week. Hence smoking is good for your health”. 

Edited by Ripple-Stiltskin

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26 minutes ago, ScroogeMcDuck said:

I thought Caullix was the first bank to use XRapid. 

What happened there?

They aren't a bank (although admittedly one could argue the same about Euro Exim Bank)

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1 hour ago, Ripple-Stiltskin said:

 

Right. 

Please give us a breakdown of the internal costs for a cross border payment of your bank. 

Don’t forget the cost allocation of management-, IT-, and other supportive departments or overhead.

Would you like pricing for the following ?

 

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Despite other nonsense, so far Coppola has a point about SBI.

Its only 3 banks and "soon" from SBI is a mamonth step.

Too much hope into SBI for Ripple/XRP.

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7 hours ago, Freaky said:

Would you like pricing for the following ?

 

What’s your point? That implementing new software is a long, expensive and difficult proces, especially for large banks? 

Yes it is.  And yet they’ve implemented numerous new systems last decades. And still are.  In “ innovation labs” or in separate subsidiaries. They spent millions and millions to digitalise, building a future proof bank, keep up with upcoming fintechs and other competition.

But I asked a question you didn’t answer...( kinda easy to answer with another question, isn’t it?)

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10 hours ago, Freaky said:

For my bank yes.  Infact when we started our first POC with xcurrent in 2015 , a business case could not be justified as there was negligible savings over SWIFT, and this was revisited during our upgrade to GPI just over a year ago.  

I should have bookmarked things I posted ages ago to be able to refer back quickly. 

The whole nostro thing is the red herring in the room. 

 

Is it really a "red herring" or is your bank one of the elite correspondent banks that actually profits from the smaller banks need to use the transfer services of yours?  And as Ripple has stated time and time again, not all corridors are so inefficient as to warrant use of their products, purely on a cost savings basis. Just curious, but with which bank are you employed?

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13 hours ago, automatic said:

Here is another angle;  approximately 35% of world population makes less than $100 per month, and ~55% makes less than $200 per month.  SWIFT charges $45-65 for a transfer.  How much money is being left on the table by virtue of never being sent because the entire amount would have been eaten up by fees?

13 hours ago, automatic said:

More importantly, I would guess that Swift's penetration of this lower segment of the market is borderline negligible as they have effectively priced themselves out of the market.  This also happens to be the exact segment of the market that Ripple is targeting at the moment ("high friction corridors" etc), and I have no doubt when Navin Gupta says that dozens of banks will be going live shortly.  Why?  Because Ripple is their best option, and Swift offers zero competition in this segment.

Thanks @automatic your analysis is completely on point - the larger banks ignore these potential customers at their peril... half the world is about to get a LOT better service IMO.

 

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The crazy thing is, that once it's dirt cheap to send payments of less than $1, a world-wide market of almost unimaginable size will surely spring up from this. If you take even "just" 25¢, and then multiply that by millions or even tens of millions, the potential for the creation of new business ideas is mind boggling.  Imagine for example, a single mom somewhere in a third world country with several children. Through her village, she's able to gain internet access.  She can now offer her hand woven, palm-frond origami characters, for 'only' 25¢ apiece, and receive payments via xrp. She and her children, and eventually, maybe even her entire village, now have a viable means to generate an economy that wasn't previously feasible. These "micro" transactions make for nearly endless possibilities. The fuse has been lit......

Edited by WuWei

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