Mastercard has recognized Ripple for its exceptional technology solutions that have revolutionized cross-border payments. In an effort to diversify its business and embrace modern technology, Mastercard has partnered with Ripple to digitize payment solutions and explore new opportunities.
A recent report published by Mastercard focuses on Ripple and its XRP remittance solutions, specifically examining the future of remittances in Latin America and highlighting the benefits of digitization and partnerships.
Mastercard has been actively exploring blockchain technology and forming alliances with blockchain-based companies, including Ripple. Last year, it was reported that Mastercard and Ripple were collaborating on developing an innovative XRP debit card, merging traditional finance with digital innovation. Additionally, Mastercard is working on a Central Bank Digital Currency (CBDC) on the Ethereum blockchain.
The report emphasizes the significant growth in remittances, particularly in Latin America, where they have been increasing at a rate of 10% annually since 2014. The largest remittance corridor in the world is the U.S. and Mexico, which is expected to reach a volume of $65 billion by 2023. This corridor serves as a prime example for studying key trends and opportunities in cross-border payment solutions.
The report also highlights the need for financial innovations in underserved and unbanked communities. These communities require digital payment solutions in a cash environment, transparency and security in transactions, regulatory compliance to build trust, rewards and financial education, as well as value and convenience.
The research team recognizes blockchain technology as a viable solution to address these challenges, with Ripple standing out due to its superior technology and payment infrastructure.
Mastercard acknowledges the contributions of Ripple, Stellar, and Circle in enabling faster and more transparent international money transfers. Ripple’s partner, SBI Remit, is specifically recognized for utilizing XRP in cross-border transactions and launching XRP-based remittance services in three Asian countries.
Ripple has received similar recognition in the past, with MoneyGram stating that Ripple is the best remittance platform. Other notable partnerships include the National Bank of Egypt teaming up with Ripple, the Qatar National Bank announcing a collaboration with Ripple, and SBI Holdings committing to Ripple and XRP for cross-border payments.
Both Mastercard and Ripple see immense potential in the digital remittance market. It is projected to reach $550 billion by 2026, growing at a rate of 8% annually. Ripple forecasts an even larger market of $250 trillion for cross-border payments by 2027. By collaborating and leveraging XRP, both companies aim to capture a significant share of this rapidly expanding market.