Just recently, Ripple was recognized by the World Bank for its innovative payment solutions that make cross-border funds transfer easier than ever.

Ginger Baker, who works as Ripple’s senior-vice president of product, confirmed during an ask-me-anything session that Ripple has huge plans for xRapid’s global expansion.

XRapid is already active in countries like Mexico and the Philippines. So far, customer response has been impressively positive in the two countries, signaling the possibility that the same could be replicated in many more countries across the globe.

How XRapid Works

The technical workings of Ripple’s xRapid payment solution are still a point of awe among many crypto fans and blockchain developers. With xRapid, XRP is used as the main transfer currency for cross-border transactions.

For this to work, Ripple partners with various crypto exchanges and banks in the select countries where the system is used.

The sender may initiate a transaction using fiat currency which is then converted into XRP tokens on the initial exchange, and then transferred to the next exchange based in the recipient’s country. The second exchange then reconverts the XRP into fiat that’s then disbursed into the destination account.

Interestingly, all this takes place within a few seconds. The whole point of using XRP-based payment solution is to improve liquidity and push down transaction costs.

With xRapid, liquidity is guaranteed since the process is fast enough not to be affected by price volatility or other external factors.

Also, the transaction costs are much lower as compared to those charged by financial institutions like banks that use the traditional transaction processing procedures.

Compliance

For one, Ripple has been perhaps one of the most active blockchain companies that have made great efforts to work alongside regulatory authorities to ensure total compliance of the laid-down policies.

In fact, Ripple checks in with regulatory bodies before signing partnerships with institutions and exchanges in various countries.

That said, the company is expected to get more active in that sense as it goes on a charm offensive to introduce xRapid into new territories.