TransferGo money transfers can be made in XRP through Ripple ODL

Endy Callahan

TransferGo transfer service will start using Ripple ODL to make payments. This solution will significantly reduce transaction time, which now is only 7 minutes.

TransferGo financial transfer service is considering the opportunity to start using the Ripple payment solution. It is called “liquidity on demand,” abbreviated as ODL. The intermediate currency in this technology is XRP.

Principles of Money Transfers TransferGo

Today, company from UK is using the RippleNet solution. It allows you to make money transfers from European countries to India. One of the founders and CEO of the TransferGo service, Daumantas Dvilinskas, notes that the transfer time is only 7 minutes.

Mr. Dvilinskas believes that in 2020 the requirements for translations will increase, and even a speed of several minutes will be regarded as very slow. For this reason, the service intends to switch to ODL, which will become one of the options for pre-financing.

The head of TransferGo said that the use of RippleNet helped to reduce the cost of integrating new bank partners in organizing payment corridors. Another positive effect is a 90% reduction in fees for cross-border transfers.

Opportunities offered by TransferGo for India

TransferGo payment system already provides Indians with the opportunity to make online payments based on Ripple technology.

Mr Dvilinkas said: “Thanks to Ripple’s cutting-edge blockchain technology, you can connect with your Indian partners online. As a result, TransferGo customers will be able to transfer funds to loved ones, as well as make instant international transfers”.

Representatives of TransferGo said that Ripple services are an excellent alternative to slow, but continued to be used communication systems. Among them are SWIFT, payment processing which lasts two to three days. Ripple offers several products, including xRapid, xCurrent, and xVia. Which one uses TransferGo, not yet reported.

2019 is an incredibly successful year for Ripple

During the year, the number of transactions on the RippleNet network increased tenfold. Over 300 client organizations actively use it. The head of Ripple Brad Garlinghouse considers 2019 the most successful for a startup from California, which is based on financial technologies.

About 20 customers use an ODL cross-border payment system with an intermediate currency of XRP. They are MoneyGram, Viamericas, Interbank Peru, goLance and others. The xRapid system (after rebranding ODL) began to be used in 2018. Since the 1st quarter of this year, the number of transactions in it has increased more than seven times.

ODL payment system is used for transfers to the Philippines, Mexico and Australia. Its executives announced plans to enter the Brazilian market.

The product progress report and Swell conference gave impetus to the XRP course, but then there was a correction. CEO Ripple Mr. Garlinghouse said that in the short term the cost of XRP for him is not fundamental.

Raguram Rajan, who in the past served as the manager of the Reserve Bank of India, believes that to use the coin as an intermediate currency in the ODL, its volatility is not fundamental. For a transaction to succeed, XRP rate stability is only 10 seconds.

Key Features of Ripple as Cryptocurrency

Ripple is a decentralized platform for payment systems. With its help, you can exchange currencies without performing return operations. An important feature of Ripple is the use of a consensus registry. The project was launched in 2012, today the cryptocurrency of the same name is in the TOP-3 by capitalization. In the article “Ripple bought shares of MoneyGram” you can read about the latest investment plans of the company.

The platform supports internal tokens, allowing you to represent cash, cryptographic currencies, exchange objects and much more. Ripple uses a decentralized database, it operates on the terms of coordination and uses distributed technology for operations.

Blockchain technology for Ripple

The cryptocurrency platform network is based on the RTGS protocol. It is used as the basis for a common online settlement system. In the traditional sense, Ripple does not use blockchain. The coin is a kind of database that is distributed between network nodes, the speed parameters of which are impressive. The system capacity is 1,500 operations per second, the cost of each of them is less than 1 cent.

Nodes are located on servers and verify transactions. Ripple does not use the Proof of Work consensus algorithm; the number of nodes is limited. Coin issue - 100 billion XRP coins. All of them were created at the first start. This explains the low cost of the token. More than half of all coins remain in the hands of the founders and the team. Between users approximately 40 billion coins are distributed.            

Ripple company keeps the right to freeze any accounts that have tokens on its coins. This can be either a single user account or a global freeze. Each node is given the right to decide on the freezing of funds itself. Many jurisdictions put forward the requirement to be able to block clients’ money.

Ripple payment system has many advantages. Among them, high speed and low cost of payments. The number of services that use Ripple payment solutions is constantly increasing. TransferGo has become one of these clients. Many experts do not hide their optimism about the future of Ripple. Consider investing in cryptocurrency and the technology behind it. This will open up excellent prospects for earnings while increasing the value of the asset.