Ripple’s cross-border technology will soon entice the Chinese public thanks to American Express being approved in the country. American Express will now be able to resolve payments in Yuan which is done through LianLian Group. The joint venture between AmEx and LianLian Group is called ‘Express [Hangzou] Technology Services Co.’
LianLian Group is a customer of xCurrent which is Ripple’s technology used for settling the e-commerce and cross-border payments of China.
AmEx becomes the first American payment company to have direct access to China’s e-commerce market. It will not use UnionPay which is a Chinese state monopoly consortium.
Ripple has been pushing its cross-border payment technology in Asia. It started in 2016 when it partnered up with SBI to leverage on service in Japan. Ripple has already launched an office in Mumbai, India where it’s trying to take advantage of India’s digital economy which is estimated to touch $1 trillion by 2024.
At the time of writing Ripple is in the green at $0.521023 with a market capitalisation of $20,947,990,639.
China’s e-commerce market was more than $627 billion last year, and thus Ripple gaining entry into it to showcase its speed and efficiency will help the cryptocurrency company substantially.
With AmEx being approved, China’s strict policies on ICO’s and cryptocurrencies may change once they realise the real potential of cryptocurrency.
Before this announcement, all foreign card companies in China had been enforced to work with the existing state-monopoly consortium known as, UnionPay – But Ripple’s partner, AmEX, has now become the first payment company to work without UnionPay.
Anything can be connected to xCurrent using a multi-hop, and so AmEX and LianLian can use xRapid in the future. The multi-hop system could further be expanded throughout China leading into the government lifting the ban.
Multi-hop lets Ripple members transact with banks or payment providers or digital wallets that there is no direct relationship.
Image Source – Flickr
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