Ripple, the enterprise blockchain and crypto solutions firm, announced a partnership with Singapore-based major payments institution FOMO Pay, which will utilize Ripple’s crypto-enabled enterprise tech to improve its cross-border treasury flows. On-Demand Liquidity (ODL) leverages XRP, the digital asset built for payments to bridge two fiat currencies, low cost settlement without the need to hold pre-funded capital in a destination market.
How is ODL revolutionizing the payments industry?
Historically, On-Demand Liquidity has been primarily utilized for cross-border payments to help payment services providers (PSPs) and small-to-medium enterprises (SMEs) manage trapped capital that could be better deployed to help grow and scale their businesses.
However, traditional treasury payments are subject to the same pain points as cross-border payments due to the archaic infrastructure that correspondent banking relies on. In fact, an estimated USD 3.5B is spent annually to address issues associated with treasury and liquidity.
By leveraging ODL for treasury payments, FOMO Pay is able to get 24/7, all year round access to liquidity for EUR and USD, thereby enabling same-day settlement globally.
On-Demand Liquidity for treasury payments makes it easy for PSPs like FOMO Pay to improve internal business cash flows, thereby allowing them to reduce business costs and improve operations. Prior to ODL, FOMO Pay’s treasury managers had to use other modes of payment in EUR and USD where funds would take 1-2 days to reach destination accounts.
What were the executives’ thoughts on the partnership?
“As one of the leading payment institutions in Singapore, FOMO Pay aims to provide clients with more cost-effective payment modes in different currencies. We are excited to partner with Ripple to leverage ODL for treasury management, which allows us to achieve affordable and instant settlement in EUR and USD globally,” said Louis Liu, Founder and CEO, FOMO Pay.
“With the APAC teeming with opportunities to solve existing silos and inefficiencies with payments, we’re seeing many forward-looking financial institutions clamoring for the next evolution of payment infrastructures – and notably based on cryptocurrencies and blockchain technologies,” said Brooks Entwistle, Senior Vice President and Managing Director at Ripple.
“This is why we are so excited to launch this crypto-enabled treasury management use case for On-Demand Liquidity with innovative customers like FOMO Pay,” Brooks further said.
Ripple was the first enterprise company to leverage crypto to tackle the trillion dollar challenges with cross-border payments. RippleNet leverages blockchain technology to help partners across a global network accelerate their business performance and scale. It delivers a superior end-customer experience, simplified network partnering, liquidity management solutions, lines of credit, and state-of-the-art infrastructure to enable real-time payments.
FOMO Pay joins companies including Azimo, Novatti, FlashFX, iRemit, Tranglo, SBI Remit, Pyypl and more who are realizing the benefits of ODL for their business and customers.