Being the first non-banking organization in the country to become a member of RippleNet, DeeMoney already handles inbound payments utilizing the blockchain network along remittance alleys in the Middle-East, Singapore, Indonesia, South Korea and Israel.
Ripple and DeeMoney revealed their second level of collaboration to broaden these services to back outbound remittances from Thailand to target countries.
The amount of remittances in Thailand is predicted to surpass the $1 billion threshold this year, reflecting an ongoing increase from $623 million in 2018 and $850 million last year.
Considering the fact that roughly million Thai nationals are currently assessed to be sending money to their loved ones, as per Ripple, the competition to offer top notch trans-border payments has encouraged both banks and non-banks to set up cost effective and quicker global transfer facilities for workers.
As opposed to banking organizations, Thai based non-banking institutions such as DeeMoney have to comply with tougher regulatory guidelines, including tailor made licensing legislations and day-to-day transfer restrictions.
In 2019, DeeMoney became the first non-banking institution to take requisite steps to acquire specific licenses from central bank. The license permits DeeMoney to widen its cross-border money transfer, currency exchange and digital payment services.
Aswin Phlaphongphanich, CEO of DeeMoney stated that both companies share similar objective of democratizing finance in Thailand by ensuring easy access to cross-border dealings to those without access to conventional banking facilities.
In the traditional banking industry, innovation via blockchain networks has been gradual, with the country’s old bank, Siam Commercial Bank, last year revoking a tweet stating that it would soon start using Ripple’s XRP token for remittances. Earlier this January, Siam announced a partnership with Ripple to develop a mobile app for trans-border payments.
Last month, Ripple further strengthened its presence in Asia through three new collaborations with money transfer firms in South Korea. The company had earlier inked a landmark agreement with MoneyGram, the second-biggest money transfer firm across the globe, to shore up its worldwide presence.
Furthermore, in February, Ripple collaborated with London-based money transfer service provider Azimo to setup an on-demand liquidity channel to the Philippines utilizing Ripple’s native token, XRP, as a link currency. The endeavor is forecast to minimize liquidity expenses by a maximum of 60%, in comparison with conventional banking routes.