Ripple’s Collaboration with US Faster Payments Council for Global Payment Initiative
Ripple, in collaboration with the US Faster Payments Council (FPC), has released its second annual global survey for 2023, providing valuable insights into the evolving landscape of the payments industry. The report, based on the participation of over a hundred payment leaders, aims to revolutionize the industry by prioritizing global payments.
According to Ripple CEO Brad Garlinghouse, blockchain technology will drive faster payments between businesses, reducing settlement windows and enabling close-to-real-time payments for all transactions. The report emphasizes the real value that blockchain brings to payments, with 77% of respondents believing that using blockchain is either “Very Beneficial” or “Somewhat Beneficial” for their organizations’ customers. Additionally, over 60% share the same sentiment regarding customers using cryptocurrency for payments.
The report highlights several positive statistics regarding blockchain payments, including increased transparency in payment processing, faster payment resolution and settlement times, and lower costs for both domestic and international payments. It also outlines a diverse range of use cases for blockchain payments, with a particular focus on business-to-business (B2B) applications for domestic payments and cross-border transactions.
While there is enthusiasm for blockchain and crypto, concerns about sustainability and security remain. The report reveals that 64% of participants are concerned about the lack of regulatory clarity as a barrier to using cryptocurrencies for payments. Price volatility and the lack of industry adoption are also concerns for many participants. However, 59% of respondents’ organizations either currently allow or are considering allowing customers to make payments using cryptocurrencies.
On a positive note, sustainability is a strong sentiment among payment leaders, with 81% acknowledging the environmental impact associated with blockchain use. Additionally, 60% believe that low energy consumption in relation to blockchain technology is of great importance. However, the report suggests that more education is needed, as just over half of the respondents are familiar with the differences between proof-of-work and proof-of-stake protocols.
Overall, Ripple continues to lead the way in transforming the global payments system. The report indicates a promising future for cross-border transactions, and with international developments underway, the potential launch of Ripple’s XRP ETFs in 2024-25 and IPOs appears to be on the horizon.