Blockchain company Ripple partners with Azimo, one of the biggest money transfer services in Europe. Within a week, $24 million was transferred between the U.S. and Mexico using XRP-based product, Ripple claims. This major partnership confirms that a faster and cheaper means of transfer exists. Especially when compared to traditional financial institutions reports Fortune on February 26, 2020.
Ripple Partners with Azimo
Per the report, Ripple recently partnered with Azimo and it signifies another major partnership the blockchain company has made. According to Ripple, Azimo sent $24 million using XRP from the U.S. to Mexico in one week.
Richard Ambrose, Azimo’s CEO while making comments said Ripple’s XRP product, On-Demand Liquidity was able to save the money transfer service 30% to 40% in charges. And these charges are often incurred when arranging currency transfers between customers in Philipines and those in the UK and Europe. Ambrose also added that the transfer process with the use of the XRP product is a fast and efficient bridge between remittance markets.
Critics Note Ripple’s Service is Still Far Behind
However, critics point out that Ripple is still far behind for its service to catch up with traditional financial institutions. Western Union, for instance, had cut ties with Ripple months after their agreement. The company’s CEO outlines that the use of XRP is five times more expensive than using Western Union to transact.
In line with that, there have been sentiments that Ripple is paying major companies to partner with them just to push the price of XRP. Ripple reportedly made over $11 million transfer to MoneyGram after buying a 10% share in the company last year.
Azimo’s CEO Reveals Ripple is Also Paying His Company
Azimo’s CEO, while making comments in that direction, remarked that Ripple is also paying his money transfer services company. However, these funds aim to reduce the costs financial institution make in setting up an infrastructure to support XRP transfers.
Ripple, the blockchain company, is the largest holder of XRP, the third-largest cryptocurrency by market cap. Although the crypto asset is quite popular and has amassed fans, users have oftentimes claimed that Ripple has been dumping the asset in the market which impacted negatively on its price.