Mastercard backs Ripple’s blockchain technology useful for cross-border payment services.
Mastercard is a world-famous company in the fintech sector, linking people, businesses, and governments around the world. The technology of this company makes transactions faster, easier, and safer. Mastercard processes billions of transactions yearly, allowing smooth payments with credit cards, debit cards, and digital wallets. The company focuses on making financial services accessible, advancing online shopping, and boosting economies through its modern payment solutions and partnerships.
For the last several years, this company conducted several research around blockchain technology as well as tied up with some blockchain technology players to fight against the challenges associated with the traditional financial sector.
In the latest report, Mastercard asserted how important cross-border remittances are for Latin America. Referring to UN information, the company explained that these payments from one country to another are crucial for families and communities, particularly in those families where people are not rich enough. For example, Mexico got a massive $55 billion in remittances in 2022, which is the highest figure of any other country.
MasterCard noted that there are several challenges associated with the traditional payment services e.g. high fees, a reliance on cash transactions, security issues, and the absence of user-friendly digital platforms.
By addressing these issues, the Mastercard report noted that Ripple, alongside Stellar and Circle, blockchain technology can be used to transform international money transfers and using this modern technology will help to fight against multiple challenges as well as it will have several additional benefits. In short Ripple’s blockchain tech transparency and immutability could make remittance services quicker, safer, and cheaper.
It is worth it to note that Ripple has multiple blockchain tools which are useful in several types of integrated payment services. Reportedly Ripple has been engaged with nearly 20+ central banks globally for the development of Central Bank Digital Currency (CBDCs).
MasterCard’s latest report failed to mention anything about the XRP coin, which helps Ripple to provide a big amount of liquidity to process payment.
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