Ripple’s Director of South Asia and EMEA, Navin Gupta, wrote an article for Forkast.News. In this article, a Ripple representative summarized the past year and made a forecast for the future. According to a Ripple employee, cross-border transactions could unify Southeast Asia.
Ripple Director for South Asia and EMEA: Article Details
Ripple’s director for South Asia and EMEA, Navin Gupta, wrote an article for Forkast.News that said cross-border transactions could bring countries together in the region. According to an employee of Ripple, 2019 was a progressive year for the financial and technological space of Singapore, given the fintech event. It is also worth considering the Ripple Swell 2019 conference held in Singapore, where you could get acquainted with the opinions of the most respected world experts in the field of financial services, payments, technologies and policies.
After Ripple Swell 2019, the main question remained: why if people could even send a person to the moon, that is, difficulties in instantly sending money to Earth. Financial technology, as noted by the representative of Ripple, change the style of the game. In 2019, investments in financial technology in Singapore reached $ 1 billion. Singapore, like the rest of Southeast Asia, is becoming the main place for financial and technological innovation. As a Ripple employee emphasized, the region’s most prominent startups include cashless payments and mobile wallets such as GrabPay, GOPay and Paytm, which compete with such well-known global leaders as Western Union and Apple Pay.
As the new digital generation begins to flow into work and stimulates consumption in the region, enterprises are increasingly thinking about their customers. In the field of payments, according to a representative of Ripple, cashless payments bring additional convenience and speed to users. In fact, payments through mobile wallets now hit credit cards in countries such as Indonesia, Thailand and Vietnam. Nevertheless, despite all the successes achieved in mobile payments, little has been done to solve the problems of cross-border payments. Global transactions, as pointed out by a Ripple employee, are supported by outdated, archaic systems that require days to settle on payments and high transaction costs.
The World Bank estimates that the average cost of remittances exceeds 7 percent of the amount sent. At the same time, traditional money transfers require numerous debits and loans on different accounts to transfer the value of money from the sender to the recipient. The representative of Ripple emphasized that the current infrastructure for cross-border payments cannot satisfy the needs of modern people. Five days for a transfer is too long for a family who needs to rent a house, or for a mother who needs to support children’s education.
To prevent everyday life from getting into a dead end, payments, as a Ripple employee pointed out, should be instant. Southeast Asia is now becoming a prominent battleground for startups due to the huge amount of venture capital flowing into the region. Not to mention the fact that the business is growing, seeking to capitalize on the growing purchasing power of the economy. As the region moves toward the goal of the ASEAN united economy to stimulate cross-border trade expansion, the availability of effective cross-border payment solutions is key to gain a foothold in the region and stimulate business growth.
However, as a representative of Ripple noted, global payments are now fragmented, as enterprises need to partner with several different financial institutions, networks or payment service providers to create connections where necessary. According to a Ripple employee, such connections are cumbersome and expensive, and also not standardized. Ripple wants to offer a modern solution to such an old problem. Thanks to Ripple technology, transactions are done in seconds. Therefore, through cross-border transactions involving Ripple, you can truly unite Southeast Asia.