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Payment Services Companies Are Showing Confidence in Ripple’s xRapid Product

Although Ripple (XRP) has lost more than half of its value in the last couple of weeks, the digital currency continues impressing investors and companies with its unique features and the potential to make cross-border payments in a faster way than any other digital currency. Currently trading around a price of $1.35, Ripple is down significantly from its all-time high of $3.80.

XRP’s market capitalization declined in the span of a few weeks from an all-time high of $130 billion to only $52 billion at present.

Source Image: coinmarketcap.com

Ripple was among the biggest losers during the past few weeks, driven down by regulatory concerns from South Korea, where it was trading close to 30% premium.

Aside from the price fluctuation, the importance of Ripple’s blockchain technology seems to be growing in the payment services industry. XRP’s low transaction charges and average transaction time in the range of 2 to 3 seconds continues to attract large payment services companies.  

After the announcement that MoneyGram (NASDAQ:MGI) would be testing Ripple’s xRapid product, several other companies also started showing their interest in this product.

Ripple announced on Wednesday that two well-known payment companies —Mercury FX and IDT Corporation are planning to use its xRapid product for certain transactions.

Ripple’s management has also been planning to expand their xRapid product. This product is designed to improve and enhance cross-border payments, particularly in emerging markets and the third world countries.

‘Digital assets promise fast transaction speeds but XRP is far faster than all of them, including bitcoin. Cutting settlement times from hours and days to just three seconds or less will remove billions of dollars in unnecessary intermediary fees,’ said Alastair Constance, CEO and founder of Mercury FX.

Although this news didn’t seem to have any special impact on the price of Ripple, it does showcase Ripple’s strategy of generating revenue through the xRapid product. Moreover, the news also suggests that Ripple has the potential to create some underlying value by generating revenue through royalty payments or product sales.

Featured Image: VoiceOfPeople

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