In a new blog post, Ripple explained how RippleNet would connect with Siam Commercial Bank and SBI Remit to help foreign workers living in Japan send instant remittances home. This will help reduce transfer times and make payments more transparent and affordable.
Foreign Remittances Are a Priority
According to Ripple, 1.28 million foreign workers were employed in Japan in 2017. Majority of them are breadwinners, and so the remittances they send are important for their families back home. However, the Japanese money transfer infrastructure is not designed to handle this kind of demand, which means significant delays and hassles for workers, along with hefty costs.
Ripple gave the example of 45,000 Thai workers who may have to work an extra 12 hours just to be able to afford the fees for money transfer. The problems could be worsened because a payment transfer could take multiple trips to banks, and the process has several communication issues. The company thus suggests that RippleNet is useful in foreign remittances, citing it as an affordable, transparent and instant way to send money across the globe.
How Does Ripple Achieve Better Transfer Solution?
The blockchain company has partnered with SBI Remit and Siam Commercial Bank (SCB) to make real-time remittances possible for foreign workers. The Thai workers who had to wait days to remit money can now open an account with SBI Remit online and then link to a home account at SCB. The workers will receive an SBI card, which can be used at an ATM to make a deposit to a Thai bank account in real time.
The instant settlement available via RippleNet will help money deposited in JPY to be instantly withdrawn in THB in Thailand. Workers are now able to send more money home, thanks to lower processing charges per transaction. This entire process is transparent as the parties involved are fully aware of the time taken to complete the process and the costs involved beforehand.
Within three months, SBI Remit was able to implement Ripple’s network. Considered the largest money transfer provider in Japan, SBI handles 10 billion JPY in cumulative monthly payment volumes. The bank is also expected to expand Ripple’s proficiencies with the Japanese Bank Consortium.