Japanese financial giant SBI Holdings plans on launching a mobile payment app that will use Ripple’s distributed ledger tech, the company’s CEO announced in a September 12 tweet.
MoneyTap Connects 60 Banks with Ripple
Ripple payment network could be on its way to take over a major share of the Japanese currency transfer market, as it’s looking to launch the MoneyTap application with support from the SBI Ripple Asia Japanese Bank Consortium later in 2018.
According to Ripple’s official website, MoneyTap will allow customers of the bank consortium to settle transactions instantly, 24 hours a day, seven days a week. The post also stated that MoneyTap is the first mobile app of its kind to be developed and used by multiple, different banks in the country. The transfer app will be available on iOS and Android phones later in 2018, Finder reported.
While the app is still not available for download, its website went live on September 12. The announcement comes directly from Takashi Okita, CEO of SBI Ripple Asia, who took to Twitter to share the news, saying that the teaser site of MoneyTap was released quietly.
Ripple stated that three members of the Japan bank consortium: SBI Net Sumishin Bank, Suruga Bank, and Resona Bank will be the first to go live on the mobile app in autumn of 2018, while other members of the consortium will follow shortly after.
This move represents an incredible feat for Ripple, as the Japan bank consortium is comprised of 61 banks covering more than 80% of all banking assets in Japan. MoneyTap will have the potential to provide on-demand payments to the vast majority of the country through this consortium.
Better, Faster, More Secure Transfers
Ripple is hoping that the move will place them at the center of the vast Japanese international money transfer market, which many see as extremely inefficient and troublesome. MoneyTap seems to be going head to head with existing services such as SWIFT, which made transferring smaller amounts of money virtually unfeasible.
Transactions in Japan can only occur on weekdays between 8:30 and 3:30, with heavy delays otherwise, while cross-border fund transfers frequently cost thousands of yen, the rough equivalent of tens of dollars.
MoneyTap would enable clients to transfer funds in smaller increments and would enable both domestic and international transfers 24 hours a day, 365 days a year.
Apart from dropping the fees, Ripple’s MoneyTap also aims to reduce the time it takes to complete transactions. If the app manages to deliver all of its promises, by guaranteeing lower fees and same-day transfers, it could revolutionize bank transfers in Japan.
While no further details have been released about the app, many members of the Ripple community have shared their excitement over the project. However, there is still no indication that MoneyTap will use the XRP, as neither Ripple nor the Japanese Bank Consortium has commented on this.