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TransferWise executing cross border payments in secs without using any Ripple solutions

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Posted (edited)
1 hour ago, tulo said:

At the end to win the competition one must offer:

  • More liquidity (right now transferwise wins big)
  • Better rate or less fees (right now it seems comparable, but we don't know for large amounts)

This kind of reasoning leads to  unnecessary worry. Many feel like this is an all or nothing type of thing. One winner and the loser gets nothing. There is PLENTY of cross border action in the world, and room for more than one company.    Is Apple out of business because Samsung also has a good product? No - plenty of market share to go around. 

Edited by RandyMarsh

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Posted (edited)

To tweak something I've said before "All XRP transactions settle very quickly, and cheaply regardless of transaction value or remitter, or currency XRP was purchased in or is redeemed in." As long as this holds true, everyone else is simply competing with VISA, not XRP. VISA bought UKs EARTHPORT, by the way, outbiddding Mastercard by stupid money for the shares. You know who's been in bed with Ripple Labs a few years? Earthport. Wonder if they (Earthport) have some agreement to buy XRP at some price agreed to circa 2014?? Go VISA! (too)

PS Original poster, I'd posit, is a BUYER of XRP. I say, Transferwise "Pthlllllllll whateva' "

Edited by SilverSailor

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4 hours ago, ANC said:

Been a lurker here since some time, just felt the need to make an account to post here, because I am really scared by this. I wasn't aware of TransferWise until now and damn they seem to deliver a good service. Their customer base seems to be rising pretty fast.

I hope someone here can comfort me right now by telling me why this isn't an XRP killer.

Reminds me of boiler room BS. It that you Nathan Rothschild, back from the grave? You got some info on XRP's Waterloo outcome??

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45 minutes ago, Kpuff said:

Payments and settlement are two totally different things. Hell most payments nowadays can be credited within seconds but are not settled until days afterward. That’s literally the entire point of ripplenet and xrp. For instant settlement without nostro vostro accounts. I can’t believe how many times we have to go over this topic. Payment does not equal settlement!!!!!!

Transferwise settles...it's not only a "payment".

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Xrp enables trasaction fee of zero.

clients use xrp for zero fee transaction and the liquidity adds value to xrp, where ripple can profit. 

This is the win-win business model. 

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4 hours ago, ANC said:

Been a lurker here since some time, just felt the need to make an account to post here, because I am really scared by this. I wasn't aware of TransferWise until now and damn they seem to deliver a good service. Their customer base seems to be rising pretty fast.

I hope someone here can comfort me right now by telling me why this isn't an XRP killer.

I hope you're kidding.  Or I hope you're just spreading FUD.  If you're serious, then I am sorry for the harm you're doing yourself by holding XRP when you don't even understand it.  It's literally impossible to have been well educated and well researched on this particular space and not have heard of transferwise.  It's like saying you're a gold investor and freaking out when someone mentions copper.  

Sending insignificant amounts of money across borders has been done quickly for a long time now. Maybe you've heard of Paypal.  I am in the US and I have a freelancer several continents away who I can pay hundreds of dollars too in real time anytime I want.  It's when the amounts get larger where risk increases and liquidity is problematic and this is where ripple and XRP come into play.

I am very pro-XRP and I will be the first to admit that there are some very real threats that XRP will face en route to the "moon."  But Transferwise is definitely not one of them.

 

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8 minutes ago, quan said:

Xrp enables trasaction fee of zero.

clients use xrp for zero fee transaction and the liquidity adds value to xrp, where ripple can profit. 

You’re neglecting slippage and exchange fees which add to the cost that clients pay to use XRP. 

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5 hours ago, xrp-protocol said:

The benefit margin brought by xrp is rather small over new generation cross-border players.

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1

It's obvious you don't understand the life-cycle of how financial transactions/money transfers are settled. Money transfer platforms like Western Union, MoneyGram, Transferwise, Venmo, Zelle, etc. only seem quick to the end user because these companies utilize pre-funded Nostro/Vostro accounts set-up with various banks all across the world that allows them to pay-out immediately to the end-user. However, the plumbing or legacy financial rails that orchestrate these transfers still take days to settle and finalize each transaction. Basically, what these money transfer platforms are essentially doing is extending you an immediate line of credit since you have already paid for the transfer. You are under the mistaken impression that once you pay for a money transfer that the settlement is immediate just because you get your cash instantly, however, that is not the case. The only thing these companies have done is just "put lipstick on a pig" as the saying goes. The settlement of these transfers still have to propagate through the various clearinghouses like FedWire/ACH here in the US, SEPA/CHIPS, etc if in Europe, or SWIFT + correspondent banks if sending international transactions. These clearinghouses and correspondent banking process take time to process and are extremely costly, which is why it costs so much to transfer money from point A to point B. What Ripple is trying to do is tackle the root issue/problem at the infrastructure or settlement layer providing immediate settlement of each transaction. I don't have time to fully go into details about each of Ripple's products (xCurrent, xVia, & xRapid), but you can read Ripple's overview of "The ROI of Using Ripple and XRP for Global Interbank Settlements" utilizing their solutions to help give you some context.

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1 hour ago, Kpuff said:

Payments and settlement are two totally different things. Hell most payments nowadays can be credited within seconds but are not settled until days afterward. That’s literally the entire point of ripplenet and xrp. For instant settlement without nostro vostro accounts. I can’t believe how many times we have to go over this topic. Payment does not equal settlement!!!!!!

Anyone with concerns about competitors or Transferwise.. read this about 5 times.  This is exactly the difference and the point of XRP.

Settlement.  In seconds.

Actual value transfer.  Not a simple message that says 'I owe you'.  Or my bank telling your bank ' Hey, you know that 100M we have sitting on deposit in your bank that we can't lend out or do anything with, really, since it's just sitting there waiting for me to be able to transfer money?  Yeah, go ahead and deduct $50 from that account and credit John's account in Thailand.'  

Or even worse, my bank contacting a middle bank, who contacts another middle bank, who then contacts a big bank, who then contacts an international bank, who then contacts a middle bank who then contacts the Thai bank and they all have to agree to credit and debit each other's accounts from the trillion dollars sitting idle between them, just so they can allow me to send $50 to John in Thailand.

There is a cost to the correspondent banking system above.  Big cost.  About 7% on average (2T/year), because everyone in the path has to take their cut (they don't work for free).  Many corridors can do the crediting and debiting in a short amount of time, but it takes a bunch of money sitting around to allow this to happen, at a cost to either the consumer, the bank and/or the recipient.

Now think about the volatility of the money sitting in all these accounts around the world.  Who wants to hold their money in Zimbabwe currency to allow people to send money there?  The hyperinflation of the Zimbabwe currency could make your $1M on deposit worth about 10% of that within a month.  Who's going to want to do that?  Answer: Nobody.

Here is a list of the five countries with the highest inflation rates in the world:
Venezuela (475.61%)
South Sudan (476.02%)
Suriname (67.11%)
Angola (33.68%)
Malawi (19.78%)
The Republic of Malawi is one of the smallest countries in Africa and among world's least developed countries

 Try transferring money into those kinds of countries and see what the fees are.

On the other hand, XRP transfers the actual value, real time, in seconds, with no idle money needed.  Simply buy XRP, send XRP, cash out XRP into destination currency --> Settlement.  All automated, completed within 3 seconds.  Minimal risk, minimal volatility within a few seconds, no opportunity cost with money sitting around.  Brilliant.

Alternatively, of course, you could also get on a plane and fly the actual money to the destination.

 

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5 hours ago, ANC said:

Been a lurker here since some time, just felt the need to make an account to post here, because I am really scared by this. I wasn't aware of TransferWise until now and damn they seem to deliver a good service. Their customer base seems to be rising pretty fast.

I hope someone here can comfort me right now by telling me why this isn't an XRP killer.

Do MOAR research and you’ll know lol. 

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