Ripple, a payments firm set to revolutionize the banking sector using blockchain technology, has partnered with 61 Japanese banks to launch a mobile app, called MoneyTap, to settle domestic transactions instantly.
This blockchain-based service will operate around the clock and is in response to the current Japanese cash settlement system, which only operates on weekdays from 8:30 am till 3 pm.
Ripple, along with its three major partners – SBI Sumishin Net Bank, Suruga Bank and Resona Bank – from the multi-bank consortium led by SBI Ripple Asia, will start the beta test next month. These banks are also planning to launch the service in autumn 2018.
Takashi Okita, CEO of SBI Ripple Asia, commented: “We are proud to leverage Ripple’s blockchain technology through our new mobile app, MoneyTap, to improve the payments infrastructure in Japan.”
“Together with the trust, reliability, and reach of the bank consortium, we can remove friction from payments and create a faster, safer, and more efficient domestic payments experience for our customers,” he added.
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Ripple, which is primarily focusing on cross-border payments system, is for the first time working to solve a domestic banking related issue.
According to Bloomberg, all the banks in the consortium will take three to four years to roll out the service, however, the final version of the software might include cross-border payments and interbank settlements, apart from domestic transfers.
Ripple’s director of joint venture partnerships, Emi Yoshikawa, said: “The release of the MoneyTap mobile app shows Ripple’s continued commitment to provide its partners across Asia and the world with blockchain-powered solutions that dramatically improve the customer payments journey.”
“We’re proud to provide this production-ready technology that not only improves the international payments experience but also have applications for domestic payments infrastructure,” added Ms. Yoshikawa.
Ripple’s Love for Banks
Ripple is one of the few blockchain firms which are working closely with the established financial institutions. Unlike other blockchain-based projects, Ripple’s aim is to make the existing system more efficient rather than disrupting it.
The US-based firm has inked deals with some of the major international financial institutions which includes Amex, Saudi Arabia’s Central Bank, the UAE Exchange, Santander, RakBank, Cuallix, and many more.