Cross-border remittance is still one of cryptocurrency’s best use cases that will push it into mainstream finance. A Pakistani bank and one of UAE’s largest money transfer and forex houses have partnered through Ripple’s global payments network to enable a new payments corridor between the two countries.
The collaboration will see Pakistan’s Bank Alfalah and Abu-Dhabi-headquartered LuLu Exchange utilize Ripple’s RippleNet Cloud service for real-time clearing and settlement of international transactions between UAE and Pakistan. With over 200 branches across the globe, the UAE exchange is among the region’s earliest, biggest international remittance operators and is one of the many financial institutions already running on RippleNet Cloud.
Ripple, LuLu, and Bank Alfalah have essentially become the first to provide a blockchain-based payments solution for UAE and Pakistan. This should lead to further growth in customer demand for Ripple in the region.
Pakistan migrants make up approximately 13% of the whole population of the United Arab Emirates. The UAE also happens to be the second-biggest remittances source for Pakistan.
Bank Alfalah CEO Atif Bajwa spoke on the importance of this implementation helping to bolster the financial bridges between Pakistan and the UAE, stating:
“The partnership with RippleNet will help us deepen our partnership with LuLu Exchange and strengthen the financial bridges between Pakistanis residing in the UAE and their families back home.”
LuLu Financial Group MD Adeeb Ahamed believes the tie-up with Bank Alfalah and Ripple will help create new opportunities. The firm is determined to make cross-border payments fast and affordable for its customers.
Meanwhile, Ripple has accelerated its partnerships with payment providers, large banks, and other financial institutions since the beginning of this year. The crypto company hopes to disrupt the remittance market that is dominated by SWIFT and remains too costly and unreliable.
Ripple’s global expansion comes despite the San Francisco-based fintech startup being in hot water with the U.S. Securities and Exchange Commission over its XRP cryptocurrency. The financial watchdog is suing the firm and top executives Brad Garlinghouse and Chris Larsen for allegedly conducting an unregistered securities offering. Ripple is contesting the lawsuit, affirming that XRP should not be deemed a security.
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