Travelex Bank, the first exclusive bank for foreign exchange transactions in Brazil has joined forces with Ripple, the San Francisco-based crypto solutions company and leader in cross-border payment services, to enable customers to send money across borders efficiently with very low costs.
The strategic partnership between Ripple and Travelex bank was announced in a Thursday press release. With this collaboration, “the bank seeks to facilitate customers’ access to international money through several services including remittance and international payments, ATMs, multi-currency prepaid cards, and more”, as disclosed in the announcement.
Taking into consideration the fact that over $780 billion in payments are sent into Brazil annually, the region is a ripe market for Ripple and its customers.
The Brazil-based bank is thrilled to embrace RippleNet’s On-Demand Liquidity (ODL) solution for crypto-enabled enterprise payments. Customers will now be able to instantly and seamlessly execute cross-border transactions at cheaper rates.
Travelex bank has now become the first bank in Latin America to utilize RippleNet’s On-Demand Liquidity(ODL) solution. The bank was also the first to be registered and approved by the Central Bank of Brazil to operate exclusively in foreign exchange.
It is worth noting that Ripple’s innovation, On-Demand Liquidity (ODL) utilizes XRP, the token majorly distributed by Ripple, as a bridge between two fiat currencies. ODL enables instant and low-cost settlement without the need to hold pre-funded capital in the destination market.
Part of the announcement read;
“Through the use of ODL, Travelex will deliver near instant settlement and access to liquidity 24/7/365, allowing them to better grow and scale their business.”
“At launch, Travelex will support payments between Mexico and Brazil, with plans to support more corridors and use cases, including internal treasury and bulk small and medium-sized enterprises (SME) payments, in the future.”
In commenting on the partnership, Ana Tena, CEO of Travelex Bank Brazil said;
“Travelex Bank is a 100% digital and 100% personal bank. We were the first exclusive foreign exchange bank approved and regulated by the Central Bank of Brazil. Focused on e-Fx transactions, we embrace tech to offer the best solutions to individuals and companies of all sizes and for the most diverse sectors.”
Ripple’s Chief Executive Officer, Brad Garlinghouse also said:
“Brazil is a key market for Ripple given its importance as an anchor to business in Latin America, its openness to crypto, and country-wide initiatives that promote fintech innovation. As a result, the market is experiencing an explosion of activity as institutions look to adopt crypto and blockchain technology to solve customer pain points.”
“From day one, we’ve focused on building solutions that deliver real utility and we are excited to collaborate with an innovative partner like Travelex Bank to help move money more efficiently for the benefit of its customers across Brazil,” he added.