On June 25, Alipay and GCash released a new cross-border payment service. It also involved one of Ripple’s partners Standard Chartered Bank.
AlipayHK and GLOBE Telecom, via its e-cash payment provider GCash, made the groundbreaking announcement when they launched their cross-border e-wallet remittance service.
The service will be offered via an e-wallet platform that is powered by Alipay’s cutting-edge blockchain technology.
Alipay is an online payment provider developed and operated by Ant Financial Services Group.
At the launch of the joint applications, the platforms noted that the e-wallet is the first such blockchain-based wallet around the globe to offer cross-border remittance services.
Like Ripple’s blockchain solutions, the service will offer speed, security, and low costs to individuals who wish to send money from Hong Kong to the Philippines.
GCash has targeted to net over 180, 000 Filipino migrants in Hong Kong.
Alipay CEO Jennifer Tan exhibited satisfaction at the success of the project. While speaking at the launch, she said that they had a lot to achieve from the partnership with GCash.
She explained that their aim was to offer Filipino workers in HK a convenient and easy experience as they send money to loved ones in the Philippines.
“We will also continue to provide tailor-made solutions for our customers as we aim to enhance their daily lives through our secure and fuss-free approach,” she said.
Standard Chartered is one of the early adopters of Ripple (XRP) for cross-border money remittances.
The bank has become the first to collaborate with GCash and Alipay to offer similar services in the Hong Kong-Philipines payment corridor.
Standard Chartered has been utilizing RippleNet to facilitate cross-border money remittances between India and Singapore.
The bank began this initiative in November 2017 and has plans to extend that service to five more countries before the end of 2018.
At the time of launching the India-Singapore services, Standard Chartered had declared that they were:
“using blockchain technology to streamline cross-border payments as part of the first live, real-time payments corridor between Singapore and India that we initiated in 2017. [We] will expand this capability to five more pairs of countries in 2018.”
Standard Chartered has played a big role in the success of the Alipay/GCash project. The two companies are relying on the underlying banking infrastructure provided by the bank.
Through its Global Head of Transaction Banking Lisa Robins, Standard Chartered affirmed its commitment to continue supporting such initiatives in the region.
The Philippines is a huge marketing region for the services, seeing over $33 billion worth of remittances in 2017.
Standard Chartered sees this as an opportunity to achieve one of its goals in the region, which is to see more people benefit from cross-border payments.
Blockchain technology is at the center of the partnership.
The firms leveraged the technology to achieve speed and efficiency, two of the issues bedeviling traditional money remittance systems.
In this collaboration, every participant gets notified once a user initiates a transaction. It’ll be interesting to see what happens in coming days and months as another adopter of Ripple’s solutions MoneyGram gets into the frame.
The payment provider has piloted the use of xRapid, but it hasn’t explicitly begun to use the platform.