American Express, a payments services company, has announced its decision to create a blockchain-based business-to-business payments channel that will
American Express, a payments services company, has announced its decision to create a blockchain-based business-to-business payments channel that will enable businesses to transfer money between the US and UK.
The project is a collaboration between American Express International Payments (FXIP) business, blockchain start-up Ripple, and banking company Santander UK. The goal is to make international much faster, reducing the transfer time from days to seconds.
“We’ve already seen evidence that blockchain technology is playing a transformational role in the way customers are served.“, according to Greg Keeley, executive vice president of global corporate payments at American Express.
Furthermore, Keeley elaborated that the partnership with Ripple could not only decrease the transaction time, but also it can make transactions more e3ffective. In particular, the new payments channel can reduce the number of intermediaries and provide greater transparency.
It is not the first time American Express shows interest in exploring the potential of blockchain technology. Earlier this year, the credit card company reportedly joined the Hyperledger Project, an open-source blockchain initiative led by the Linux Foundation. At the time, American Express told cryptocoinnews.com that they were excited to join Hyperledger, adding that blockchain technology could help them deliver new and innovative products for their customers and partners.
On the other hand, Ripple is also benefiting from the newly established partnership. The comapny has faced tough competition from Swift and Stellar, a blockchain start-up co-founded by former Ripple executive Jed McCaleb.
“Transfers that used to take days will be completed in real-time, allowing money to move as fast as business today.”, as Brad Garlinghouse, CEO of Ripple, stated. He explained that the company looks forward to expanding their partnership to help other American Express FXIP customers.