The Credit Suisse report goes on to say that cryptocurrencies, such as XRP, will initially have little impact on the C2C (consumer-to-consumer) market. Existing platforms such as Transferwise, Remitly or Western Union have already developed global systems that enable real-time cross-border C2C payments at relatively low costs, according to the study.
The report comes as a surprise, as Western Union was not very enthusiastic about Ripple and its payment technology for the XRP token last year after several months of testing. In an interview, Western Union’s CEO at that time that the company operates its own transfer system, which enables transfers five times cheaper than XRP.
On the other hand, in February 2019, Molly Shea, the company’s director general for Asia-Pacific, that Western Union will use cryptocurrencies if they prove to be more efficient and cost-saving:When you think about cryptocurrencies, if those start to take off, we need to be ready. We need to be ready from a technology perspective. And we’ve got to be ready from – regulatory has to be there – but we constantly have to be looking for those trends where customers are looking and make sure that you’re ready to meet those needs and expectations.
However, the report also identifies a potential for payments to and from emerging markets. As the report states, matching (“netting”) works very well for high-volume countries, such as the G10 industrialized countries. In emerging markets, however, “the challenges remain in the currencies of lower volume emerging markets”.
Author : Jake Simmons