Ripple has been making more partnerships than any other digital currency. The altcoin is now working with 61 Banks from Japan on an application which is aimed to enable customers to settle cash transfers instantly which is one of the efforts to apply Blockchain technology in finance. This will be a mobile app which will allow users to send funds to other accounts in Japan. The Beta testing will commence next week. Three major banks which include SBI Sumishin Net Bank Ltd, Resona Bank Ltd, and Sugura Bank Ltd are planning to start the service before the end of this year.
This is not the first partnership between Ripple and banks. It’s working in several countries to change how banks handle payments. They are now turning to Blockchain and the ledger technology which is already being used by digital currency like Bitcoin. Japanese banks want to embrace financial technology to improve efficiency while reducing costs and interest rates for maximum gain.
Using Ripple for efficiency
The app developed by Ripple will be called the MoneyTap app and will create faster, efficient and safer payments according to Takashi Okita who is the CEO of the partnership parent company SBI Holdings Inc. which is working with the banks. The banks want to change the current system where cash transfers are only processed by the banks on weekdays only.
The country recently passed a law which required all the banks to connect their customer’s accounts using apps. The currently proposed app will use open API connections to transfer money from one account to the other according to the director of venture partnerships at Ripple Emi Yoshikawa.
App the banks will have provided the app to their customers within three years according to Yoshikawa. For a start, the software will focus on local transfers, but in the future, it will be customized to accommodate cross-border payments and also inter banks settlements.
According to Yoichiro Higuchi of Resona Bank:
“Our bank plans to contribute to promoting cashless transactions while also improving customer convenience and reducing the transaction costs.”