• Tien Phong Commercial Joint Stock Bank (TPBank) is now using RippleNet to process cross-border payments in real-time.
• As a result, millions of migrant workers in Japan and Vietnam will benefit from cheap cross-border remittances.

The number of labour migrants worldwide continues to rise because not all countries in the world have enough work and pay. In Japan the number of Vietnamese labour migrants has reached a record high in the last five years, increasing the need for a cheap alternative to sending money by bank transfer compared to traditional bank transfers.

TPBank uses RippleNet for cross-border payments

TPBank is one of the leading digital banks in Vietnam and recognizing this growing demand, has partnered with Ripple to use blockchain technology to process cross-border transactions between Japan and Vietnam. By using RippleNet, TPBank’s customers can send money home within seconds at very low cost. Nguyen Hung, CEO of TPBank, explains:

By joining RippleNet, remittance transactions from abroad to TPBank will be faster, while ensuring safety and transparency, cash flows will still be legally transferred via foreign banks to Vietnam.

TPBank was the first bank in Vietnam to join RippleNet at the end of 2019, thus setting the course to benefit from a global payment network. Initially, TPBank processed payments only for migrant workers and private individuals, but the remittance service is to be offered to small and medium-sized enterprises (SMEs) as of now. Hung says:

This takes high priority for SME customers of TPBank because taking advantage of RippleNet with real-time transfers and 24/7 transaction processing, SME customers will save time, minimize costs, reduce risk management and release the necessary capital that can be used to further develop their business.

Today, TPBank processes billions of Japanese yen via RippleNet, which corresponds to several million dollars. TPBank manages capital of VND 84 billion (almost $35 million), according to the last available annual report in 2018. It is important to note that it is not known whether TPBank uses on-demand liquidity technology.

Asian market increasingly important for Ripple

In Asia in particular, the number of migrant workers continues to rise steadily, so that Ripple’s technology is meeting with great demand in this region. Most recently, Thailand’s largest bank, Siam Commercial Bank (SCB), announced the official launch of the SCB Easy App for 16 million private customers in Thailand. By using this app, customers of the bank can send money transfers to family members in just 40 seconds at low cost. In addition, Ripple and SCB continue to work on the development of EMVCo-QR payments, which will benefit the local population in particular by sending micro payments and tourists.

XRP’s price follows the current market trend and increased by 5.99% to a price of $0.2186 within the last 24 hours.

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