American Express along with Santander have partnered with financial technology firm Ripple to speed up cross-border payments between the U.S. along with the U.K. by using blockchain technology.
Payments made by American Express’ business customers on its FX International Payments (FXIP) platform will right now be routed through Ripple’s enterprise blockchain network, RippleNet.
Blockchain — otherwise known as distributed ledger technology — allows vast amounts of data to be stored on a dispersed network of computers around the planet, rather than on one centralized server.
the item was originally used to record all bitcoin transactions however increasingly businesses are finding alternative uses for the technology, such as payments, trade finance along with identity verification.
numerous some other financial institutions have been experimenting with distributed ledger projects, including JPMorgan, UBS, Credit Suisse, Barclays along with HSBC.
“This particular collaboration with Ripple along with Santander represents the next step forward on our blockchain journey, evolving the way we move money around the planet,” Marc Gordon, executive vice president along with chief information officer at American Express, said in a statement Thursday.
American Express’ blockchain project will initially allow customers inside U.S. to connect instant, traceable cross-border non-card payments to U.K. Santander bank accounts.
“This particular blockchain solution opens up a fresh channel between the U.S. along with the U.K. along with presents significant opportunity for payments globally”, Jose Luis Calderon, global head of global transaction banking at Santander, said in a statement Thursday.