22 July 2017
download the report now

Ripple ships tools to help banks analyse cross-border payment costs

13 March 2017  |  3912 views  |  0 Source: Ripple

The McKinsey 2015 Global Payments Report stated that the number of global payments made in 2015 totaled $30.3 trillion and is expected to grow 6% per year over the next five years.

With that in mind, it’s increasingly important for banks to understand their end-to-end cost for cross-border payments. Many Ripple customers expressed that this is no simple feat, which is why we created the cost model. It is designed specifically to help banks understand their cost structure and how Ripple can help them overcome current inefficiencies.

With Ripple’s new cost model, banks can easily enter transaction volume and operational metrics to receive a custom cost analysis. The cost analysis breaks down cost to a per-payment level, for both a bank’s current system and if it were to use Ripple.

The analysis includes a cost structure that shows the bank’s transactional volume and metrics compared to global averages. Cost breakdown across payment processing, treasury and reconciliation is also shown with the bank’s current provider and what it would be with Ripple. Armed with this analysis, banks can easily estimate the efficiency gains it could achieve using Ripple for international payments.

Ripple’s solution is designed to lower total cost of settlement, enabling banks to transact directly and with real-time certainty of settlement. By upgrading existing infrastructure, Ripple increases end-to-end processing efficiencies and can ultimately allow banks to make new business models economically viable through lower costs. But how much? We estimate close to 60% cost savings for an average payment size of $500.

Ultimately, the cost savings only tell half the story - the real benefit of Ripple is derived from the high quality transaction products and services that enable banks to service new customers, new use cases and new markets.

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.niceactimize.comvisit www.finastra.com

Top topics

Most viewed Most shared
German fintech factory FinLeap raises EUR39 millionGerman fintech factory FinLeap raises EUR3...
13467 views comments | 19 tweets | 15 linkedin
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
9688 views comments | 14 tweets | 20 linkedin
Barclays rides payments-as-a-service wave with investment in Form3Barclays rides payments-as-a-service wave...
8685 views comments | 16 tweets | 12 linkedin
hands typing furiouslyThe Digital Trade Chain: the blockchain tr...
8267 views 0 | 8 tweets | 16 linkedin
Mastercard and Scotiabank join Enterprise Ethereum AllianceMastercard and Scotiabank join Enterprise...
7180 views comments | 25 tweets | 15 linkedin