American Express has announced initiation of blockchain-empowered, business-to-business (B2B) cross-border payments. American Express FX International Payments (FXIP) is working with Ripple, a supplier of enterprise global blockchain solutions, to make blockchain payments commercially available. It will reduce the time and price of settlement, while maintaining the level of security that American Express clients expect. Santander UK is the selected partner to initiate this new transaction channel, which has the potential to expand substantially over time.
“American Express has a long history of integrating new technologies into innovative products and services that differentiate and enhance the customer experience,” said Marc Gordon, Executive Vice President and Chief Information Officer at American Express. “This collaboration with Ripple and Santander represents the next step forward on our blockchain journey, evolving the way we move money around the world.”
Non-card payments can now be routed through Ripple’s real-time payment network, known as RippleNet. Compared to conventional payment processes, blockchain-enabled payments can improve international transactions by simplifying connections with intermediaries and to provide instant end-to-end visibility into a transaction.
Ripple is a San Francisco -based company which focuses on blockchain-based cross border payments. The company is associated with many big banks, and is supported by firms that include Standard Chartered, SBI Holdings, and Accenture
“We’re taking a huge step forward with American Express and Santander in solving the problems corporate customers experience with global payments,” said Brad Garlinghouse, CEO of Ripple. “Transfers that used to take days will be completed in real-time, allowing money to move as fast as business today. It is just the beginning, and we look forward to growing this partnership to help other American Express FXIP customers.”
RippleNet will be helping remittances from American Express customers in the U.S to reach UK bank accounts faster through Santander. Ripple’s payments network has the capability to let American Express to link with their customers across the globe.
To initiate this process Ripple will tie American Express customers to Santander in UK. This will provide instant, trackable, and cross-border payments.