In a recent announcement made by the companies, it was explained that the joint venture would come in the form of a payment processing mobile app that will focus on instant money transfers using blockchain technology.
This marks the very first time that blockchain and its associated distributed ledger technology (DLT) will be made available in this form to individual customers in such a capacity.
Santander is also aware of this distinction and was quick to point out this achievement.
An official from the bank said in a statement:
“We expect to be one of the first global banks to roll out distributed ledger technology based payments for individuals.”
About the app
The app has gone through in-house testing by the bank, using micropayments as low as £10. It was reported that the payments were tested for transfers up to £10,000 to ensure that individual customers from all walks of life could be facilitated optimally.
By using blockchain and its distributed ledger technology (DLT) as the underlying processing mechanism for these payments, the bank has ensured that the payments not only remain fast and with economical transaction fees, but that the data shared between internal systems is also as secure as possible.
It was also mentioned that all details about transactions fees and any applicable FX rates would be shown to users right away to warrant transparency. The transfer method was described as being completed in “3 clicks” and within “40 seconds”.
It was described that the app would first be rolled out in 4 countries: the U.K., Brazil, Portugal, and Spain, and upon the response that it receives, the move will be followed by releasing the app in more territories.
Not just transferring funds, but saving them
The transaction fee from this mechanism is not only going to be low for the customers, but the process is going to be low-cost for the bank itself.
The cost-effectiveness that blockchain brings to the table, especially for large enterprises with a large number of users, is just one of the many reasons why more and more banks are affiliating with Ripple to carry out national and international remittances.
Ripple is on the move
This is just one of the recent slew of affiliations that Ripple has added to its portfolio. The company had also announced its association with the National Bank of Abu Dhabi (NBAD) just a few days ago, which will also be utilizing Ripple’s blockchain technology to carry out remittances through its branch banking facilities.
While NBAD came to be the first bank in the Middle East to use such a technology for its customers, Santander is going to be one of the first banks in the world to provide the technology with as simple an avenue as a mobile app, all thanks to Ripple.
With these achievements and the things that it has planned in the future, Ripple is undoubtedly defining blockchain technology’s usage in the banking sector.