This article was first published on Insights – Ripple
Mercury FX is an international payments specialist with offices in London, Hong Kong and South Africa. The company joined RippleNet to speed up transfers, lower costs and open up new markets that were previously too expensive to access.
The company’s original target audience was corporations and high-value individuals. However, the lengthy processing times and high fees for using existing cross-border settlement technology meant that only transferring large sums of money was profitable. To overcome these limitations, Mercury FX decided to investigate new approaches to global payments and a way to both improve services and market reach with RippleNet.
“Our sweet spot was high-value transactions,” explained CEO, Alastair Constance, “but to really grow we wanted to target anyone who needs cross-border payments. Disruptive technology like blockchain does not come along too often. When we discovered that Ripple could help us settle payments 100 times faster and at a fraction of the cost, it was a game-changing moment.”
Ripple helps deliver Mexican food faster
Mercury FX trialed On-Demand Liquidity through RippleNet—using the digital asset XRP as the bridge between the Mexican peso and the U.S. dollar—by donating to an orphanage in Mexico. Previously, transferring funds to Mexico was an arduous process that involved buying pesos from a banking partner then using the creaky correspondent banking network. A typical transfer from the U.K. to Mexico took up to three days and cost approximately U.S. $50.
“Mexico had never been economically viable for settling payments because the cost advantage was not there,” Constance recalled. “With RippleNet, we made that payment in seconds and the price dropped from U.S. $50 to about U.S. $2. The trial with the orphanage was so successful, we were soon facilitating payments for a U.K. business that imports Mexican food....
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