In a major development for cross-border payments, Ripple has partnered with Onafriq, a UK-based financial technology company, to expand remittance corridors across Africa. This partnership is poised to streamline trade between 27 African countries, the United Kingdom, Australia and the Gulf States.
The partnership leverages Ripple’s private network, formerly known as RippleNet. Offering a faster and more cost-effective alternative to the traditional remittance process.
Specifically, the private network, now called Ripple Payments, aims to solve the usual high fees and slow transaction reality of traditional remittances. By adopting Ripple’s solution, Onafriq will ensure fast and secure transfers, especially benefiting the African diaspora who regularly send money back home.
It is important to say that, despite some already observed speculation in the cryptocurrency market, there are no reports of the XRP token in this effort. Ripple, the company, and Ripple Payments, the private network, are all different things than the XRP Ledger (XRP), an open source protocol and a public network.
Ripple and Onafriq partnership for remittances
Onafriq’s selection of Ripple’s payment infrastructure highlights the growing acceptance of blockchain technology in financial services. This partnership will provide much-needed relief to remittance senders who, according to the World Bank, face an average fee of 8.3% for sending money to Sub-Saharan Africa, compared to the global average of 6.4%.
Interestingly, Ripple’s platform guarantees a significant reduction in transfer costs and an improvement in transaction speed, leading to a more inclusive financial system for the regions involved.
Africa embraces alternative payment solutions
Furthermore, Ripple’s expansion into Africa comes at a pivotal time when the continent is witnessing a rise in mobile money platforms and a growing fintech ecosystem. With the digital economy growing rapidly, the partnership with Onafriq marks a positive move towards economic innovation and integration.
The new remittance routes will boost economic activity between these regions, offering a critical service to the approximately 25 million expatriates from these African countries living in the Gulf, the UK and Australia.
This progress serves as evidence of Ripple’s growing footprint in the global payments industry and confirms the vital role of emerging technologies in shaping the future of financial transactions, particularly in developing regions where traditional banking services are less accessible.