Ripple and Onafriq Partnership for Remittances
In a significant development for cross-border payments, Ripple has partnered with Onafriq, a UK-based financial technology company, to expand remittance corridors throughout Africa. This collaboration is poised to streamline transactions between 27 African nations, the United Kingdom, Australia, and the Gulf States.
The partnership leverages Ripple’s private network, formerly known as RippleNet. Offering a faster and more cost-effective alternative to the traditional remittance process.
Notably, the private network, now called Ripple Payments, aims to solve the usual high fees and slow transaction reality of traditional remittances. By adopting Ripple’s solution, Onafriq will ensure quick and secure transfers, particularly benefitting the African diaspora who regularly send money back home.
Africa is Adopting Alternative Payment Solutions
Onafriq’s choice of Ripple’s payment infrastructure underscores the growing acceptance of blockchain technology in financial services. This collaboration will provide much-needed relief to remittance senders who, according to the World Bank, face an average fee of 8.3% for sending money to Sub-Saharan Africa, compared to a global average of 6.4%.
Interestingly, Ripple’s platform guarantees a significant reduction in transfer costs and an improvement in transaction speed, leading to a more inclusive financial system for the involved regions.
Hot Take: The Impact of Ripple’s Partnership with Onafriq on Cross-Border Payments
The partnership between Ripple and Onafriq signifies a major step forward in improving cross-border remittances within Africa and beyond. By leveraging Ripple’s private network, this collaboration promises faster and more cost-effective transactions that will benefit millions of individuals sending money across borders. It also highlights the increasing role of blockchain technology in transforming traditional financial services and advancing financial inclusion in developing regions.
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