Santander Partners with Ripple to Bring Certainty and Speed to International Payments
As nicely as being one of many largest banks on the earth, Banco Santander additionally has a fame as one of many finance business’s most progressive organizations. Since the launch of its innovation fund, InnoVentures, in 2014, Santander has invested closely in a spread of digital applied sciences. But each innovation should straight profit the financial institution’s thousands and thousands of consumers, like One Pay FX—the transformative cross-border funds service created in partnership with Ripple.
“We want to be at the forefront of the merging of finance and technology,” defined One Pay FX Chief Technology Officer, Ed Metzger, “but our innovation is always customer led. Customers told us that the international payments process could be better so we partnered with Ripple to explore how blockchain could make transactions faster, cheaper and more transparent.”
International funds are only one of a big vary of providers that Santander gives to its 146 million retail and industrial prospects all over the world. But the frequency of suggestions in regards to the lack of readability and transparency within the conventional course of prompt that a chance existed for any financial institution that might overcome these challenges.
“Customers told us that they never knew how much money was going to get to their recipient because it was never clear what the exchange rate would be or what fees would be charged,” recalled Metzger. “On top of that, they had no transparency about when the payment was going to get there. They just knew it would take 3-5 days. This type of feedback is standard across the industry. No one was solving the problem.”
Relieving the Pain of Slow, Expensive Cross-Border Payments
Santander’s seek for an progressive answer by no means targeted on a selected expertise. Instead the financial institution appeared for any solution to clear up their buyer’s particular ache factors, which is why Ripple proved to be a great associate.
“Ripple helps us directly address the issues raised by our customers,” stated Metzger. “Whether they are putting down a deposit on a holiday rental or paying a foreign supplier, they see exactly how much will arrive when they’re making the payment and have certainty about when it will get there. Ripple also helps us address the speed issue of international transactions. Some payments on One Pay FX now happen instantly. I made a payment recently from an account I have in Spain to one in the UK and received text alerts about the transaction from both accounts within seconds of one another.”
Santander launched One Pay FX within the UK, Poland, Brazil and Spain. The cheaper transaction charges and quicker settlement speeds together with the improved transparency round each cost generated very constructive buyer suggestions. The service additionally obtained a Silver Award on the 2018 Distribution and Marketing Innovation Awards. But much more vital for Metzger, is how One Pay FX has modified buyer habits.
“First, we’re seeing individual customers make more international payments on the app,” he famous. “Before they may have used a dedicated remittances service, but now they’re coming back to us. In addition, customers now treat an international payment like a domestic transfer. They have so much confidence in the low cost, same day process, it’s no longer a big deal to send money abroad.”
Better Payments Help More People Prosper
One Pay FX has been launched in six international locations and funds will be despatched to 2 dozen international locations, together with all of the euro zone.* Santander Executive Chairman Ana Botín has stated that half of the financial institution’s annual worldwide transfers can now be dealt with by the app. This represents a forex hall protection which might cowl roughly half of the present flows. Santander continues to look at buyer wants and suggestions to determine on subsequent steps to develop this system.
“We’re looking to expand One Pay FX to new territories and customer segments so more people can benefit from faster, cheaper and more transparent international payments,” concluded Metzger. “The partnership with Ripple is key because our success so far gives us the confidence to move ahead even faster. It’s not just the technology. Being part of RippleNet has helped us to forge sustainable and scalable relationships with other financial institutions around the world. By offering more customers a better way of sending money abroad, we’re achieving our goal of helping people and companies prosper.”
If you’re enthusiastic about studying how RippleInternet might help higher serve your prospects, contact us.
* This article was up to date for readability on July 10.