Ripple introduces Line of Credit; a beta service to fund instant cross-border payments
By Pavithra R
Ripple, an enterprise blockchain solutions for payments has announced the launch of Line of Credit, a new beta service on RippleNet that allows customers using On-Demand Liquidity (ODL) to source capital on-demand to initiate cross-border payments at scale using the digital asset XRP.
Limited access to working capital is a primary barrier to growth for many companies. Many FinTechs and small and medium-sized enterprises (SMEs) lack the capital and resources to compete. Faced with stalled growth, customers turn to create bespoke credit arrangements with each partner, in each destination market. Each arrangement requires additional overhead and management, making it burdensome, slow and an ultimately inefficient process.
Ripple’s Line of Credit is a solution to this problem as it provides upfront access to capital for every market by simplifying access to financial solutions that accelerate business performance and scale.
Financial institutions can leverage Line of Credit and use XRP to complete instant, low-cost cross-border transfers. Those using ODL on RippleNet can purchase XRP from Ripple on credit. Customers are charged one fee on the amount borrowed, with no hidden fees, and can receive approvals faster than through traditional means. It also opens up opportunities to use the capital freed from pre-funded accounts and further invest in their business to enter new markets and reach new customers.
Line of Credit has already been piloted by RippleNet customers, who specialize in cross-border money transfers and is receiving positive feedbacks helping companies grow their business and make global transfers more affordable, for more people.
The launch marks the latest step by Ripple in its vision to enable the Internet of Value and break down the barriers in finance. By leveraging distributed ledger technology (DLT) and XRP, the universal asset for the exchange of value, Ripple is delivering access to services that were previously not possible. The solution is only for use by eligible institutional RippleNet customers, and not by consumers, retail customers, or the general public
Recently, Lemonway partnered with Ripple to enable instant, cost-effective Euro-to-Euro payments.
Founded in 2012, San Francisco based Ripple provides a frictionless experience to send money globally using the power of blockchain technology. RippleNet currently operates in over 45 countries across six continents.
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