A remittance platform based in Bangkok has become the first non-banking institution in Thailand to use blockchain tech from Ripple for processing international payments.
Ripple said in a press release DeeMoney is now using RippleNet in a move to process transactions aimed at cutting costs.
Launched in 2018, DeeMoney provides Thai bank accounts with same-day settlement services. The company turned to RippleNet to make transactions coming into the country more efficient, CEO Aswin Phlaphongphanich said.
“Ripple’s technology provides a single, automated system that speaks the same way to all its 300 partners worldwide, making it simple for our tech teams to integrate into our process,” he said. “This helps to reduce manual work and intervention, which in turn reduces costs, of which the savings are passed to our customers.”
One Million Thais Working Overseas
Thailand is a hub for the remittance and settlement services. The Bank of Thailand estimates more than one million Thais are working overseas, many of whom are still sending money back to their families.
Siam Commercial Bank (SCB), the biggest commercial bank in Thailand, first began testing a cross-border remittance solution based on RippleNet in 2018. Developed collaboration, and SCB added additional settlement services including one based on a mobile app.
RippleNet is a network of 300-plus banks and financial institutions using Ripple’s blockchain for cross-border settlement and remittance. One of several products under its umbrella – known as On-Demand Liquidity (ODL) – allows companies to use the XRP cryptocurrency to avoid large amounts of fiat currency being attached. It’s not clear whether DeeMoney uses that particular service.
Last year Ripple invested famously in MoneyGram, with the money-sending giant now using various Ripple products including XRP via ODL. DeeMoney said it also plans to add support for transactions leaving Thailand, although there was no disclosure of a timetable for that integration.
In a Feb. 26 hearing for a consolidated class action against Ripple Labs Inc., a California court has argued in its ruling that crypto currencies that are not securities may be subject to federal laws targeting unfair, deceptive, or abusive acts or practices (UDAAP).