There are some good vibes around cross border payment and remittance in general. It’s a burgeoning market which is projected to be a multi-trillion-dollar business by 2022.
According to estimates by McKinsey, payments in the remittance industry will generate close to $400 billion and this collaborates with statistics churned by the world bank. The World Bank points out that China is set to receive net inflows of around $64 billion in 2019 but India will retain the top spot with $80 billion by year’s close.
Perhaps drawn by this attractive statistics, Ripple through a LinkedIn post are now searching for a Country Manager. Their intention has been made clear in the first sentence where they asserted that they are “sharpening their focus on the dynamic payments landscape in China.”
They go on saying the ideal candidate will “engage actively with Ripple Product, Sales and Client Success functional leaders to offer insights into local needs and trends, support sales targets, service delivery and satisfaction metrics” aside from fulfilling other requirements.
If anything, this is a trend in the right direction despite impediments placed by Chinese regulators, this move will likely draw more attention to Ripple. Ripple’s objective is be a go-to platform where financial institutions can facilitate their cross-border fund transfer operations.
With offices in San Francisco, Sidney, San Paulo, London and Mumbai, an addition in Shanghai surely showcase the company’s ambition as an ideal replacement of SWIFT. Note that SWIFT is yet to penetrate into the second largest economy in the world. Technically, Ripple is ahead of the back as far as their intention of penetrating into the Chinese market is concerned.
Their partnership with Lian Lian Pay, a Chinese money service company with 150 million users and registered in Hong Kong, places them at a prime position.
Lian Lian CEO Arthur Zhu said this about their use of xCurrent and collaboration with Ripple:
“With RippleNet, we will further enhance that experience and increase our market share by offering customers instant, blockchain-powered payments across the 19 currencies that we currently support. We look forward to working with Ripple to power payment flows between China and RippleNet members in new markets.”
All the same, they will have to comply with stringent rules under the “Regulation for Managing Blockchain Information Services”—a creation of the Cyberspace Administration of China– that will come to effect in 10 days. As such, they will be forced to register with authorities and set up a robust system for managing complaints amongst other directives.