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Fund Instant Cross-Border Payments With a Line of Credit From RippleNet


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I think this is wonderful news. Like that using the ODL product, Ripple has finally found a way how to fully unleash the power of their 45B XRPs. The effect can only be positive on ODL use and XRP use

Ripple has changed their targeted customer base strategy within the last few years.  As well as a lot of this heavily relies on knowing the banking structure in the US, which makes it challenging to f

I used to work at one the Banker's Bank organizations in the US: https://www.investopedia.com/terms/b/bankers-bank.asp.  I worked in a project manager role, including development projects to improve f

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56 minutes ago, Wolfparty said:

As I have been saying, expected this, however a little confused with the small business target (which is great/think PayPal lending competitor) but then the note on the bottom as it being only intended for institutional RippleNet clients if I read that correctly? And XRP jurisdiction/as payment to v loan for tax purposes just shows the hurdle Ripple has with this rollout v PayPal business lending unit dealing with just USD and booming.

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7 hours ago, StirCrazy said:

As I have been saying, expected this, however a little confused with the small business target (which is great/think PayPal lending competitor) but then the note on the bottom as it being only intended for institutional RippleNet clients if I read that correctly? And XRP jurisdiction/as payment to v loan for tax purposes just shows the hurdle Ripple has with this rollout v PayPal business lending unit dealing with just USD and booming

Ripple has changed their targeted customer base strategy within the last few years.  As well as a lot of this heavily relies on knowing the banking structure in the US, which makes it challenging to following.  It seems like Ripple didn't even fully understand this banking environment until recently.  Ripple previously targeted selling their products and services directly to larger banks and financial institutions, which was foolish. They wasted time and money doing this.  The larger banks and financial institutions already have their own competing products against Ripple's RippleNet, which they have a lot of control and profitability over.  So larger banks/institutions rejected Ripple's offers for them to pay Ripple to replace their existing solutions that they control and generate high profits from.  This was a lose lose situation for the larger banks.

The real opportunity is for Ripple to sell their services to smaller banks, to compete against the larger banks that offer financial processing services (like Fiserv, Bankers' Banks, etc.).  Smaller banks don't have the internal resources or IT tools to directly process financial payments to other financial institutions, so they pay larger banks to process the transactions on behalf of them. Think about when you go to a small local bank or credit union.  When you request to transfer money (ACH and wires) from that bank/credit union to another institution, the smaller bank is actually paying to outsource the financial processing transaction tasks to a larger bank, like Fiserv. Fiserv in return charges a high fee to the smaller local bank to complete processing these transactions, cutting into the smaller bank's profits and increasing costs to you.  So Ripple's opportunity comes in for them to offer this service to smaller financial institutions, more efficiently and lower cost as compared to larger banks like Fiserv.

Larger banks charge even higher fees for transacting payments internationally as compared to domestically, based on processing international transactions being notoriously difficult and inefficient. Ripple has already been offering their customers to use XRP on RippleNet for international transactions, but it was a pain for the customers to acquire XRP to use within RippleNet.  So it looks like this line of credit allows their customers to have a streamlined and easy way to pay and use XRP for international transactions, all within RippleNet.

When Chris Larson is complaining about SEC regulations and moving headquarters to another country, it is most likely partially related to existing regulations hurting them with directly selling lines of credit for XRP within RippleNet to their customers.
 

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Can this be considered to be an alternative to Swift's nostro-vostro accounts?

Imagine having one "nostro-vostro" account that supports multiple currencies and doesn't need prefunding.
The account starts with a zero balance and is able to send and receive money through ODL. The delta between debit and credit operations will result in a positive or negative balance.
Positive balances will be paid out to the customers, negative ones will need funding on a daily/weekly/monthly base.

 

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I think this is wonderful news. Like that using the ODL product, Ripple has finally found a way how to fully unleash the power of their 45B XRPs. The effect can only be positive on ODL use and XRP usefulness. Long term definitely very positive on XRP price and short term I am not so sure how it will be played out, but my guess is that once this line of credit product is available, we will start to see the price steadily going up.

Ripple has a team of devoted and motivated professionals of various crafts and this is what makes the company a true and only winner.

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On 10/9/2020 at 9:41 AM, wogojump said:

Ripple previously targeted selling their products and services directly to larger banks and financial institutions, which was foolish. They wasted time and money doing this.

Nope, When you pick a fight, you pick a fight with the biggest around, SWIFT! In that fight your small, but skilled, You whack him one in the chin, MGI, a light stun. Then you quickly bounce around the crowd, looking for your seconds, it gets foggy, you threaten his seconds and the spoilers step in, VISA, PAYPAL. Now your fighting three at once! You untie your right arm, there's a tatt on it, XRP! LOC! Now there is madness, the seconds are fighting each other, the crowd is jostling in, it looks like an all-in. A trumpet sounds, you holler "To Me All! Your allegiances are waned! To Me All! To Me XRP ODL!! The crowd roars and surges forward............... to be continued..

Just Like Brad said in 2018, 3 to 5 years!

 

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8 hours ago, Duke67 said:

but my guess is that once this line of credit product is available, we will start to see the price steadily going up.

How do you see this happening?

I feel atleast for the next couple of years, price would be driven by speculation and/or bitcoin influence on the price. 

Flare Defi stuff, if it picks up will add some % increase in the price and a way to make some extra cash using Xrp.

Ripple IPO might be another short term pump event  

 

 

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On 10/8/2020 at 11:41 PM, wogojump said:

Ripple has changed their targeted customer base strategy within the last few years.  As well as a lot of this heavily relies on knowing the banking structure in the US, which makes it challenging to following.  It seems like Ripple didn't even fully understand this banking environment until recently.  Ripple previously targeted selling their products and services directly to larger banks and financial institutions, which was foolish. They wasted time and money doing this.  The larger banks and financial institutions already have their own competing products against Ripple's RippleNet, which they have a lot of control and profitability over.  So larger banks/institutions rejected Ripple's offers for them to pay Ripple to replace their existing solutions that they control and generate high profits from.  This was a lose lose situation for the larger banks.

The real opportunity is for Ripple to sell their services to smaller banks, to compete against the larger banks that offer financial processing services (like Fiserv, Bankers' Banks, etc.).  Smaller banks don't have the internal resources or IT tools to directly process financial payments to other financial institutions, so they pay larger banks to process the transactions on behalf of them. Think about when you go to a small local bank or credit union.  When you request to transfer money (ACH and wires) from that bank/credit union to another institution, the smaller bank is actually paying to outsource the financial processing transaction tasks to a larger bank, like Fiserv. Fiserv in return charges a high fee to the smaller local bank to complete processing these transactions, cutting into the smaller bank's profits and increasing costs to you.  So Ripple's opportunity comes in for them to offer this service to smaller financial institutions, more efficiently and lower cost as compared to larger banks like Fiserv.

Larger banks charge even higher fees for transacting payments internationally as compared to domestically, based on processing international transactions being notoriously difficult and inefficient. Ripple has already been offering their customers to use XRP on RippleNet for international transactions, but it was a pain for the customers to acquire XRP to use within RippleNet.  So it looks like this line of credit allows their customers to have a streamlined and easy way to pay and use XRP for international transactions, all within RippleNet.

When Chris Larson is complaining about SEC regulations and moving headquarters to another country, it is most likely partially related to existing regulations hurting them with directly selling lines of credit for XRP within RippleNet to their customers.
 

Very interesting.  You seem almost to write from personal experience.  Have you worked in this field?

I do agree that Ripple have changed their strategies, but one of their strategies has always been to adapt and develop and adapt.  Finding solutions to real life problems. 

For all their problems Ripple have now created an xrp ecosystem is now broadly based, ticks many boxes and designed to be opportunist

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On 10/10/2020 at 10:16 AM, Julian_Williams said:

Very interesting.  You seem almost to write from personal experience.  Have you worked in this field?

I do agree that Ripple have changed their strategies, but one of their strategies has always been to adapt and develop and adapt.  Finding solutions to real life problems. 

For all their problems Ripple have now created an xrp ecosystem is now broadly based, ticks many boxes and designed to be opportunist

 

I used to work at one the Banker's Bank organizations in the US: https://www.investopedia.com/terms/b/bankers-bank.asp.  I worked in a project manager role, including development projects to improve functionality on our solution that would have been a competitor product of RippleNet. Working on projects like cutting down processing financial transactions from 2-3 days to a day.  Also had the joy of being on call, to troubleshoot domestic ACH transaction issues every time one of the other larger finance institutions messed up their tasks for sending/receiving the ACH files.

 

I worked close with our CIO, which she shortly joined the Faster Payments Task Force after the group originated. Which one of the main reasons is to make sure we stayed relevant and offered competitive solutions, against upcoming Fintech companies like Ripple.  The best way to do this, is to stay directly connected with your upcoming competition. Larger banks are more business savvy than what people usually give them credit for.  They are the reason SWIFT exists, which a golden rule for them is to make sure there is always a neutral 3rd neutral party for establishing interoperability standards.  They will not just hand over their core business competencies of transacting payments to a single private organization to fully control (like with Ripple), without a fight.

 

Ripple has completed their first stage of the XRP ecosystem.  One of the key factors that will determine their future success is how much faster and cheaper transactions utilizing XRP are in reality with real business uses: https://ripple.com/xrp/.  They also need to make sure their leadership is laser focused on areas like navigating regulations and lobbying, product enhancements, sales, and customer on boarding.  They do not have the luxury of continuing to make mistakes, if they do the other larger banks will adapt their own solutions to stay relevant and competitive against RippleNet.

 

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5 hours ago, wogojump said:

 

I used to work at one the Banker's Bank organizations in the US: https://www.investopedia.com/terms/b/bankers-bank.asp.  I worked in a project manager role, including development projects to improve functionality on our solution that would have been a competitor product of RippleNet. Working on projects like cutting down processing financial transactions from 2-3 days to a day.  Also had the joy of being on call, to troubleshoot domestic ACH transaction issues every time one of the other larger finance institutions messed up their tasks for sending/receiving the ACH files.

 

I worked close with our CIO, which she shortly joined the Faster Payments Task Force after the group originated. Which one of the main reasons is to make sure we stayed relevant and offered competitive solutions, against upcoming Fintech companies like Ripple.  The best way to do this, is to stay directly connected with your upcoming competition. Larger banks are more business savvy than what people usually give them credit for.  They are the reason SWIFT exists, which a golden rule for them is to make sure there is always a neutral 3rd neutral party for establishing interoperability standards.  They will not just hand over their core business competencies of transacting payments to a single private organization to fully control (like with Ripple), without a fight.

 

Ripple has completed their first stage of the XRP ecosystem.  One of the key factors that will determine their future success is how much faster and cheaper transactions utilizing XRP are in reality with real business uses: https://ripple.com/xrp/.  They also need to make sure their leadership is laser focused on areas like navigating regulations and lobbying, product enhancements, sales, and customer on boarding.  They do not have the luxury of continuing to make mistakes, if they do the other larger banks will adapt their own solutions to stay relevant and competitive against RippleNet.

 

It is really interesting to get an inside view looking out

I agree with most of your last para, except do not believe it is as gloomy as you put it.  If there was an easy way for a big corp to compete SWIFT would have used it.  Products like ANT and Libra are all fiat based walled gardens and come with inbuilt inflexibilities and penalties.  To compete against the Ripple XRP model you really have produce another version of ODL, and that would take a long time and a lot more organisation than anything that has come up against Ripple/XRP so far. 

The market for cross border is huge, and XRP is so much more than a cross border token.  It is a token of global trade, including retail and micropayments, and now with Flare it has developed a Smart Contract facility.  It is now in the landscape and other competitor have to live with it.  I do not think they can rub out such a competitor without producing something that competes very directly.

I write as a complete outsider looking in!

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On 10/9/2020 at 2:16 PM, Duke67 said:

Long term definitely very positive on XRP price

On 10/9/2020 at 2:16 PM, Duke67 said:

but my guess is that once this line of credit product is available, we will start to see the price steadily going up

Is it that once these RippleNet partners start using XRP between each other, they will be selling their XRP for its last step in the ODL journey on the open markets/corridors with the retail exchanges like we use, is that how it works?

With that we should see a steady rise in XRP price?

So I saw this video from Ripple's Barry Joseph, he's talking about ODL This gentleman from Ripple says "over the past couple of years we have received valuable feedback on how to improve this product, the biggest part of friction for our customers, was that you still actually needed to prefund domestically, locking up valuable working capital"

Here's the video at the point he explains it  https://t.co/Cm2Za5jmME?amp=1

I thought the whole point of ODL, was NO prefunding, now they come out with this line of credit product. Man I wish it was mid 2017 again and ODL was already in production.

 

 

 

odl revised.jpg

Edited by pucksterpete
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12 hours ago, pucksterpete said:

With that we should see a steady rise in XRP price?

Actually I’m worried it’s the reverse.  
 

Previously any ODL would involve a buy and a sell on public exchanges.  In the line of credit cases the critical change (to us) is that the buy is done from Ripples wallets.  So the sell will remain without the corresponding buy pressure.  (Differing exchanges but assuming arbitrage across all exchanges...)

 

This seems to be a “Ripple will be funding some (many?) SME’s growth in the next periods via private XRP sales and removing that buy pressure from public exchanges”.   They will be acquiring Fiat and offloading XRP.  
 

The fact that they removed the public buy side pressure in these line of credit cases doesn’t seem to talked about yet.  Are we all keeping quiet about it hoping it goes away somehow?  Admittedly the volumes thus far are insignificant,   but if this catches on...

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