In yet another demonstration of the effectiveness of Ripple’s payment solutions, the project has launched a new remittance corridor between Saudi Arabia and India, the latter being one of the most active remittance markets over the world.
Ripple’s Navin Gupta was the host of a discussion at a Ripple Regional customer event for Mena, and along with fellow participants, spoke about the new remittance corridor launched between Saudi Arabia British Bank’s (SABB) and India’s IndusInd bank.
The blog post describes how SABB’s Head of Global Liquidity and Cash Management, Ghada Al Jarbou, said that “opening a corridor with India was an obvious choice because India already had a sophisticated payments infrastructure and because the Indian Rupee (INR) was one of the top remittance currencies for SABB.”
The post then describes the pace at which the partnership was executed, taking roughly one and a half months for both parties to go from talks to the first transaction, and the remittance market in Saudi Arabia itself is quite lucrative for the application of DLT solutions. World Bank data shows that the total average cost for a $500 remittance transfer is roughly $15.
The transaction occurred on December 23, 2018, and took seven minutes for the end-to-end process. Now, however, transactions have been reduced to three minutes and are expected to shorten even further.
The remittance market in India is figured to be at about many dozens of billion and even Facebook, which plans to launch its own token this year, has been rumoured to first begin its crypto operations for the remittance market in India.
India itself is reportedly seeking to ban cryptocurrencies entirely, though the banks in the country have been showing increasing interest in cryptocurrencies.
