NBAD to use Ripple for cross-border remittance payments
The National Bank of Abu Dhabi (NBAD) has become the first bank in the Middle-East to use Ripple’s blockchain solution. The agreement means NBAD customers can send real-time cross-border remittance payments on the Ripple platform.
NBAD will use Ripple’s distributed ledger technology (DLT) to offer fast, cheap and secure international remittances and fund transfer payments across regional markets in the Middle-East. The platform provides end-to-end visibility of the transaction to customers, in addition to instant, cost-effective transfers.
The large migrant community in the United Arab Emirates means demand for remittance payments to families back home are strongly in demand.
The news follows an earlier deal with MoneyGram and past partnerships between Ripple and American Express and Santander, among others such as Standard Chartered and UniCredit. A consortium of 61 Japanese banks and two South Korean banks are also piloting Ripple for cross-border payments, but more in the area of trade finance and other applications.
Commenting on the NBAD deal in a statement, Ramana Kumar, Managing Director & Head of GTB Business and Product Management at the bank, said: “We strive to ensure our offerings are efficient and transparent. Blockchain technology paves a new way in achieving our goals and better serves our customers, adding value through accessibility and transparency. As an initial adopter and first bank [in the Middle-East] to go live on Ripple, NBAD offers innovative solutions to meet our clients payments needs.”
Ripple CEO, Brad Garlinghouse, added: “Banks and their customers have been hearing about the promise of blockchain technology to enable real-time cross-border payments. Now, some of the most innovative and successful banks like NBAD are making this a reality by offering Ripple-enabled payments to their entire customer base. In doing so, they are paving the way to make 2018 the year we see broad commercialization of blockchain technology take hold globally.”