Analyst Explains Why XRP Should Be Standard for Cross-Border Remittances

Renowned crypto author Panos Mekras highlights the appeal of XRP in cross-border settlements.

Mekras took to X to react to a recent article published by Ripple’s partner Tranglo, which addressed five misconceptions about remittances and cross-border settlements.

Tranglo Addresses Misconceptions About Remittance

In the article, Tranglo addressed the misconception that places banks as the cheapest method for cross-border remittance. Dispelling this misconception, Tranglo cited a March 2023 World Bank report highlighting banks as the most expensive service provider.

According to Tranglo, the World Bank, in the report, stated that online remittances via banks cost an average of 12.1% per transaction, while the global average was around 6.24%.

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To verify this claim, Tranglo’s research team conducted an internal study authenticating the World Bank’s data. Per Tranglo’s findings, the global average transaction fee for traditional banks and payment gateways ranges from 3% to 7%.

Interestingly, Tranglo claims that its users pay an average transaction fee of less than 0.5% for cross-border remittance.

Crypto Author Says XRP-Powered Low Fees Should Be the Standard

Tranglo’s claim attracted the attention of the renowned crypto author Mekras. The industry analyst pointed out that Tranglo’s low transaction fee is possible due to XRP and blockchain.

Furthermore, he said Tranglo’s low fee should be implemented as the standard for cross-border settlements and remittances.

This is what $XRP and blockchain technology in general do. This is what the standard should be in remittances and cross-border payments. https://t.co/lhaTimMkfX pic.twitter.com/dvGfPRNg3l

— Panos 🔼{X} (@panosmek) November 2, 2023

Ripple and Tranglo Partnership

It bears mentioning that Ripple has been a major Tranglo partner since March 2021. At the time, Ripple acquired 40% of the company’s stake to expand the reach of On-Demand Liquidity (ODL) to clients in the Asia Pacific (APAC) region.

Ripple made the strategic move based on the growing demand for ODL, a solution that leverages XRP as a bridge currency for cross-border settlements.

Following the partnership, Tranglo integrated Ripple’s ODL solution into its more than 20 payment corridors, helping businesses to process seamless, cost-effective, and fast transactions.

In May 2023, Tranglo disclosed that it had processed over $1 billion worth of transactions through Ripple’s ODL. Tranglo’s partnership with Ripple has helped the company expand its presence in the United Arab Emirates (UAE).

As reported earlier, Tranglo deepened its presence in the UAE by collaborating with Al Ansari Exchange, the country’s largest outward personal remittance.