The adoption of Ripple’s software solutions for cross-border payments is steadily increasing. Low costs and fast transactions are arguments that convinced the Kuwait Finance House to use the technology.
Last year in October, the Kuwait Finance House announced that it would use Ripple’s international transfer service. Since then, a long test phase has been running in which the blockchain technology has been thoroughly tested. According to the company’s latest tweet, a “zero fee transfer service” is available to customers who make transfers in Saudi Riyal (SAR) to Al Rajhi Bank customers.
KFH has started operating an instant cross-border remittance service using Ripple’s blockchain technology. The zero fees “Instant International Transfer” service is available now in Saudi Riyal SAR where customers can make remittance transactions to beneficiaries at Al Rajhi Bank
— Kuwait Finance House (@KFHGroup) January 6, 2019
In October, Dilip Rao, global head of infrastructure innovation at Ripple, said that the Kuwait Finance House (KFH) is working with Ripple to test a service that will compete with the globally recognized standard, SWIFT. This service will be used primarily by business partners that want to transfer large amounts of money.
The KFH is one of the largest Islamic banks in the world and was the first bank of the Arabian state that joined RippleNet. KFH shows itself as an innovative pioneer in the field of international credit transfers. The institution has not yet revealed whether they will use xCurrent or xRapid. Nevertheless, the KFH emphasizes that its expansion plans are global and that successful results should benefit all customers in additional currencies from the benefits and potential of the technology.
Ripple’s Expansion in the Middle East
Ripple continues to expand in the Middle East. They fullfill the demand for alternative solutions to the existing traditional banking system is increasing. Already in December, the National Bank of Kuwait (NBK) introduced the NBK Direct Remmit service. This service sends cross-border credit transfers to the destination within seconds. And with the help of the xCurrent software solution, and at a low cost.
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