Popular blockchain payment firm Ripple, according to several reports, is planning a massive expansion into Brazil.
The XRP firm which is already present and operational in the South American country plans to expand further in the country through partnership with several Brazilian banks.
The firm’s current focus is to coordinate with banks and regulators in the country to make remittances more efficient, Luiz Antonio Sacco, managing director of Ripple in South America, said in an interview.
Ripple, however, intends to expand beyond Brazil into other South American countries like Argentina, Peru, Chile etc.
Ripple’s planned expansion through partnership with banks
Ripple’s expansion to Brazil began in July 2019, when the company opened its first office in the country.
Since then, Sacco says, around 30% of the total transaction volume of RippleNet, which operates in 45 countries worldwide, has moved through the country.
The XRP firm since it started operation in Brazil, it partnered with Santander, Bradesco, Rendimento and other banks in the country.
According to reports, the company has set up an arrangement with institutions like Santander and many others.
According to Sacco, successive advances in Brazilian banking regulation to facilitate financial transactions, including international, opportunities will grow significantly in coming years he said.
International money transfer in Brazil is processed by SWIFT, which is expensive and takes weeks.
Sacco explained that the demand for instant and cheap remittances in Brazil is multiplying. Besides, Brazil has very clear regulations for digital banking.
He said that transfers via Ripple could cost up to 10% of the amounts charged by banks unlike the huge amount charged by SWIFT.
After the company’s expansion into Brazil, its first partner was Santander Brazil, two months later, the British payment service provider, Transferwise, followed.
The British company quickly established itself in the country as one of the five largest providers for international payments.
In December 2019 also, Ripple announced its success story in a Series C funding where it got $200 million in funding.
Brad Garlinghouse, CEO of Ripple, said at the time that he expects the firm’s customer base to grow 30-40% and transaction volume to increase over 600% in 2020.