Ripple Boost, seven other Japanese banks join MoneyTap

SBI Holdings, the co-developer of the MoneyTap payment service, brought 13 more banks into play. The XRP Research Center officially confirmed the development with the words:

“@Sbigroup announces that SEVEN more Japanese banks (20 total to date) have pledged to join Money Tap, Co. Ltd. to invest, a brand new company running a domestic processing system for digital payments with #RunsOnRipple. “

Working with Ripple’s xCurrent, the app is an instant localized bank-to-bank transfer channel. It is designed to serve bank customers of the East Asian country who require a 24 hour a day, seven day a week transaction option. The new banks on the MoneyTap platform include Shimane, Ashiga, Chikubo, Towa, Toho and Fukushima.

Ripple works with major money transfer magnates

Ripple has worked tirelessly to get more financial institutions on board its blockchain solutions. However, with a lack of regulatory clarity about banks’ use of XRP, the blockchain startup has focused more energy on money transfer solutions. For example, Ripple has teamed up with MoneyGram and Ria Money. As a result, the blockchain startup has invested equity in MoneyGram, which will use xRapid and thus XRP in its operations.

The MoneyTap app launched on October 3, 2018 and was a major milestone for the San Francisco-based blockchain startup. The smartphone app, based on Ripple’s hyper-ledger blockchain technology, was the first of its kind developed for various Japanese banks.

The first members of the Japanese banking consortium to go live with the app in 2018 were Resona Bank, Sumishin Bank and Suruga Bank. The app would then be rolled out to other members of the consortium with 61 banks. Led by SBI Ripple Asia, the consortium holds at least 80% of all Japanese banking assets.

MoneyTap by Ripple’s massive use case in Japan

Japan is kind of an anomaly in a region where the rise of mobile payment systems is staggering. In neighboring South Korea, for example, almost every transaction is cashless. South Korea is also planning to go virtually cashless by 2020 and the coins are about to expire. In contrast, 80% of transactions in Japan are cash-based. Fiat has deep cultural meaning in Japan in its physical status. The state is therefore promoting innovations in cashless payments that are suitable for the masses.

The MoneyTap use case is extensive. To illustrate, the domestic payment window in Japan is inflexible and takes place between 8:30 a.m. and 3:30 p.m. on weekdays. The blockchain-operated MoneyTap, on the other hand, enables immediate domestic payments at any time and any day. All the customer needs is a QR code or a phone number and a bank account. The transaction fees are not only faster but also cheaper.

At the height of Ripple’s banking partnerships in Japan, Singapore and South Korea, among others, Resona Bank withdrew from the MoneyTap partnership. The Japanese bank was one of the users of the app and is the fifth largest banking group in Japan. The April 11, 2018 announcement was a severe blow to Ripple’s xCurrent MoneyTap solution and the burgeoning trust among banks. Rumor has it that Resona Bank has left the Ripple Run app for their native Resona Wallet app. The increased new support for these 13 banks is a good sign that Resona Bank’s exit did not do much damage to Ripple’s payment control plan.

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