Santander UK plc intends to become the first bank in the UK to employ blockchain technology to facilitate cross-border payments. The bank intends to launch a new Ripple Tech powered instant payment app. Santander Uk, a bank owned by Spanish Santander Group, has partnered with Ripple to power its international payments app. Furthermore, Ripple’s blockchain xCurrent and RippleNet platforms will power the app.
Blockchain adoption by Santander
The Santander bank aims to launch a blockchain tech-powered instant payment app. The app is now using Ripple’s blockchain solutions to make quick payments as well as reduce costs. The official blog on Ripple’s website read:
“Today Santander announced that they are the first U.K. bank to introduce Ripple’s blockchain technology to facilitate international payments through a new app. They are rolling it out as a staff pilot, with the intention to expand the technology at a later date.”
The CEO and co-founder of Ripple applauded Santander’s move in the following words:
“Ripple is redefining the way that value moves around the world, and today we’re already enabling real-time, affordable international settlement between banks who have adopted our solutions. As an early adopter and pioneer in the banking industry, Santander is the first bank in the world to transfer real funds externally. In doing so, they are creating a new, exemplary standard of service.”
According to Santander’s blog, they will launch the new app as a staff pilot app. In order to use the app, their staff will have to download the app and enter proper details for verification. For now, transfers in Euro will be limited to 21 countries, while transactions in USD are only limited to the United States.
Ripple replacing traditional systems
Regarding the tie-up with Ripple Tech, Sigga Sigurdardottir, Santander’s Head of Customer and Innovation said that:
“The need for finance has evolved from providing a physical Pound in your pocket or card in your purse, where you pay at a till, to be seamlessly integrated into a new, always-on, connected lifestyle. At Santander we work hard to ensure our banking is simple, personal and fair and believe new Blockchain technology will play a transformational role in the way we achieve our goals and better serve our customers, adding value by creating more choice and convenience.”
The new staff pilot app aims to settle transactions within 24 hours. It otherwise takes days using the traditional payment system. Additionally, the Ripple-backed app also shows how much a particular international payment can cost.
Ripple hopes to keep the projects coming, to be sure. The firm has partnered with money transfer companies like Moneygram and Western Union using Ripple’s xRapid system. Also, UAE Exchange — foreign exchange and bill payments solution — is now testing Ripple’s xCurrent platform.