In 1927, the pilot Charles Lindberg could fly with cash across the Atlantic Ocean faster than most payments cross the same water space at the present time.
While Lindberg made his historic single flight from New York to Paris in 33 hours, a typical bank transfer today takes 1-2 days using Swift, and a typical ACH transaction can take twice as long.
Today's news has been waiting a long time: American Express (Amex) has opened a payment corridor using Ripple. According to the website Coindesk , with the help of it you can send money from England to the United States of America in just a few seconds.
The new corridor was created in cooperation with the Spanish bank Santander. Managing the strategic accounts of Ripple, McRus Tricher, called it obviously a faster, but at the same time, safer way of sending money across the Atlantic.
Tricher, who was previously on the board of directors of Swift, said:
Earlier Amex had to send Swift messages to banks for requesting payment, now Amex is directly connected to banks thanks to Ripple and its cryptography, so the value transfer is instantaneous.
The corridor is managed by the American Express Division for International Payments in Foreign Currency (FXIP). It connects US Amex users using dollars to Santander bank accounts in the UK using British pounds. All this is done with the help of Ripple - RippleNet.
According to Tricher, integration directs non-card payments through a distributed payment network for the possibility of almost instantaneous, verifiable cross-border payments.
DIRECT CONNECTIONS
The project is the last important Amex event for this year. In 2017, the credit giant managed to join the Hyperledger consortium and enter into partnerships with the Bitcoin application provider Abra.For Ripple, which recently hosted a conference called Swell, the new project is the next step to allow its own blocking platform, which was tested during the first half of 2016, to go on a free flight.
For example, Ripple recently joined Europe and the US through joint work with the Swedish bank SEB, which at the end of last year revealed its intentions to connect Stockholm with New York using Ripple technology.
Tricher said that since the launch in the second quarter of this year, the SEB platform has already conducted transactions for $ 630 million.
If you believe him, the project moves forward and makes it possible to make a transaction in nine seconds or less. Now it is limited to "clean" blocking, which does not require crypto currency.
He said that both projects have something in common: "direct connection". "There is no intermediary in the form of a crypto currency."
ABOUT THE CRYPTO CURRENCY HAVE NOT FORGOTTEN
However, Tricher also shared his expectations that other banks will increasingly follow the example of financial services provider Cuallix. Last month, the company became the first Ripple partner to convert cross-border funds transfers into its own XRP lock token.Instead of storing dozens of "exotic currencies" (as Tricher called them) on so-called nostro accounts all over the world, Cuallix took the first step towards the release of these funds through the storage of XRP. Otherwise, the funds would be frozen for reuse.
It is the use of Ripple's own crypto currency, says Tricher, which will lead to the company's rise above its competitors. The main one, Swift, creates its own block system using Hyperledger. There are many smaller companies with their own cross-border payments options.
"If banks and bank users accept Ripple like American Express and start connecting, XRP will be an option that they can use for liquidity," he said, adding the following:
It is at this moment that everything will truly come to life.
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