What is Santander’s blockchain money transfer service, when does One Pay FX start and what is Ripple?
ONE PAY FX offers Santander customers the opportunity to take advantage of the speed and transparency of blockchain technologies
But what is blockchain and how does One Pay FX work?
Santander launched One Pay FX to enable customers to make quick payments abroadCredit: Alamy
What is Santander One Pay FX?
One Pay FX is a new service from Santander that allows customers to send and receive international payments the same or next day.
The new financial technology is available now in the UK, Spain, Brazil and Poland.
Starting today, Santander customers can download One Pay FX for free from the Apple App Store.
Thanks to blockchain-based technology, Santander’s new service is faster than normal payments and allows you to see the exact amount received in the target currency before making the transfer.
Although blockchain technology is complicated, it is much faster than traditional bankingCredit: Alamy
What is blockchain technology?
Blockchain is a new payment method that is the technological backbone of cryptocurrencies like Bitcoin and Ripple.
The system allows users to send payments to each other without going through a third party like a bank.
When someone wants to transfer money, the blockchain system records it as part of an immutable database.
Since the transfer is not monitored by a bank or third parties, the payment is checked and verified by other people who also send transactions.
Users who also use blockchain technologies cannot change the amount of your payment, they can only check that it is legitimate.
Once your transaction is verified, it will be added to a queue of other transfers and then forwarded to the person you want to pay.
While it sounds incredibly complicated, it is much faster than a bank and much more transparent because all payments are publicly recorded, viewable, and completely immutable.
Santander uses a blockchain technology called Ripple.
What is Ripple?
Santander has been developing its One Pay FX with Ripple for 18 months.
Ripple works similarly to a blockchain technology in that it does not require transactions with a bank and all transfers are recorded in an immutable database.
The financial system is very similar to a medieval banking technique called hawala, which involves transferring money without moving it.
Simply put, it works like this:
- Adam wants to send £ 10 to Beth.
- Adam and Beth live in different countries.
- Chris lives in the same country as Adam.
- Daisy lives in the same country as Beth.
- Adam gives Chris 10 pounds.
- Chris contacts Daisy and agrees to owe her £ 10.
- Daisy then gives Beth £ 10 and the transaction is complete.
This is a very pared-down version of how Ripple works.
In reality, Ripple will replace Chris and Daisy.
Adam sends Ripple money and instructs it to send the money to Beth.
Beth then logs into her Ripple account and receives money from Adam.
Santander has been developing for One Pay FX for 18 monthsCredit: Alamy
What are the benefits of One Pay FX?
The main advantage of One Pay FX is the speed at which money transfers can be made.
Most international transactions are received on the same day.
You can send between £ 10 and £ 10,000 24 hours a day.
Payments can be made from GBP in EUR and USD, currently payments in EUR can be sent to 21 countries and in US dollars to the USA.
Ana Botín, Executive Chairman of Banco Santander, said, “One Pay FX uses blockchain-based technology to provide a fast, easy, and secure way to send international money – delivering value, transparency, and the trust and service customers get from a bank like. expect Santander.
“Starting today, customers in the UK can use One Pay to send money across Europe and the US.”
“In Spain, customers can send to the UK and the US, while customers in Brazil and Poland can send to the UK. Transfers to Europe can be made on the same day and we aim to offer instant transfers in multiple markets by summer. “
“Our goal is to help the thousands of people who use international payment services every day, and we will add more currencies and destinations in the coming months.”
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at email@example.com or call 0207 78 24516. Don’t forget to join Sun Money’s Facebook group for the latest great deals and money saving tips.