Ripple’s flagship product is most likely its On-Demand Liquidity (ODL), which is designed to make it faster and cheaper to send money across national borders, especially in the remiss market. However, the ODL requires, in addition to the cryptocurrencies XRP, of course, the corresponding payment corridors in order to be successful. No wonder that Ripple is constantly striving to establish new partnerships and thus promote adoption.
The most successful partnership is with the Mexican crypto stock exchange Bitso, which, according to a Ripple Executive, already transfers up to 10% of the remiss payments between the USA and Mexico. According to an employee, Ripple is on the verge of entering into new profitable partnerships and establishing new payment corridors in 2020.
Ripple and ODL also for Europe
The Ripple employee to whose statements we are referring is the Senior Vice President of Product Management and Corporate Development, Asheesh Birla. He writes in an article published on Monday on Ripple’s website that his company will be adding new partnerships to important payment corridors to ODL this year:
Ripple is well on track to open new ODL corridors this year and we are bringing new customers on board and working with existing customers to increase ODL volumes in key corridors such as USD-MXN, USD-PHP, AUD-USD and PHP and EUR-USD.
In addition to the new payment corridors, he writes, the company is looking to increase transaction volumes in the existing corridors between the U.S. and Mexico, the Philippines, Australia, and Europe.
Asheesh Birla leaves readers in the dark as to which specific payment corridors Ripple plans to reopen this year. But in February, the company revealed that it is working to add new corridors in Europe, the Middle East, Africa, Asia Pacific and Latin America.
The focus is on smaller payments
While Ripple is partnering with companies, it is naturally people who benefit from the advantages of ODL. According to Asheesh Birla, the company also wants to maintain or even strengthen this focus by focusing on lower-volume payments rather than higher-volume, lower-frequency payments like those made by companies:
We continue to focus on supporting low-value and high-frequency payments with ODL […]. In particular, we are reducing the focus on large treasury payments, traditionally used to finance businesses and services without real-time transfers, to support low value individual transactions and to meet the growing demand for remittances and SME payments. This may reduce the overall volume of ODL transactions.
As Birla writes, this may have an impact on the corridor transaction volumes often used by Ripple fans, which could be reduced with the focus on low value and high frequency payments.