The cryptocurrency community has no love lost for Ripple and its native XRP asset. Even so, there are a lot of reasons as to why companies and service providers see merit in the company and its technology. The following use cases – ranked by importance – show how various aspects of the financial sector can be improved in the years to come.
4. Banking Revenue Streams
Many banks around the world are struggling to identify and explore new revenue models. That is only natural, as the financial situation looks very different from how it was many years ago. Ripple wants to ensure that banks can discover new markets, primarily with real-time global payments. This allows financial service providers to meet customer expectations and expand their reach around the world fairly quickly.
However, real-time payments are not an easy market to impact. For Ripple, the service currently spans over two dozen countries, but there is still a lot of work to be done. Through its RippleNet venture, it is slowly onboarding additional banks around the globe, with a strong focus on Asia. Tackling the unbanked regions of the world will prove a big challenge, for rather obvious reasons.
3. Payment Provider Reach
Payment providers and processors can only thrive when enough people use their services. Ripple aims to offer a way for payment providers to attract more users, which is also facilitated by the company’s RippleNet feature. Processors can decide to use either fiat currencies or XRP, either through the xCurrent or xRapid products offered by the company.
2. Exchange Volume
When talking about exchanges, one has to look beyond cryptocurrency trading platforms. Ripple wants to help companies attract global payments. That applies to banks, payment providers, cryptocurrency exchanges, brokers, and so forth. XRP has the potential to become a major digital asset in the global payments industry, although it is still too early to draw any real conclusions in this regard.
1. Simplifying Payments
Ripple is exploring various ways to simplify payments, both online and offline. Some of these use cases are payment tracking, capital efficiency, and rich data transfers. Combined with lowering overall operational costs, this solution could make an impact on a global scale a lot sooner than people anticipate.
This is also where Ripple’s xVia solution comes into the picture. It is a tool meant to simplify payments across RippleNet without the need to install additional software. The xVia solution offers instant settlement and confirmation of transfers, as well as competitive FX rates.