Ripple and its partnerships have made news multiple times and the cryptocurrency community has regarded the company as a progressive machine. The Brad Garlinghouse led company has not just partnered with other crypto companies but also with mainstream organizations.
New reports have now revealed that Ripple has partnered with Azimo, one of the largest money transfer services in Europe. The biggest highlight was not the partnership, but rather the use of its native cryptocurrency, XRP.
Azimo announced the tie-up on Tuesday, leading many in space to assume that blockchain technology and cryptocurrencies would pave the way for the future. With this move, both Ripple and Azimo are planning to take over the large market for remittances in the United States. Ripple has already invested in services to capture other global remittance markets, namely the MENA region.
Richard Ambrose, the Azimo chief, praised Ripple’s efforts to reduce transaction costs and the efficient way in which the company operates. Ambrose noted that using the On-Demand Liquidity[ ODL] offered by Ripple, Azimo was able to save more than 30 %-50 % of transaction costs everywhere. These cost savings have been made possible in transfers between customers in the Philippines and those in the US / Europe.
Richard Ambrose aligned with Garlinghouse’s claim that XRP existed as a bridge currency to make transactions faster and cheaper. Azimo admitted that he had been following Ripple for quite some time, as the digital asset industry had begun to prove its mettle. In particular, Ripple has made progress in the market for remittances through investments in MoneyGram and organizations in the Middle East.
At the moment, Azimo must pay for the use of Ripple’s transfer technology. Sources close to the company have stated that the payment was small compared to the capital saved during global transfers. Azimo has been interested in seeking ways to reduce transaction costs for developing regions such as Nigeria and wants to expand its services with Ripple’s support. Ambrose added:
“Ripple is like those blind men describing an elephant, who all describe it differently depending on where they stand. For some, it’s a speculative cryptocurrency, for some it’s an enterprise blockchain, and others it’s a financial messaging solution.”
Azimo is not the only company that Ripple has partnered with recently with the Intermex deal being the latest one. Intermex will use the RippleNet to create “faster, transparent cross border remittance services between the US and Mexico.