Credit Suisse Reports Show Western Union Still Testing XRP

According to Credit Suisse reports, Western Union which is the global leader in cash to account transfers still tests Ripple and the XRP token. Ripple’s XRP has the potential to decrease the processing time and to generate savings in the B2B market as we are reading in the ripple cryptocurrency news.

In the research report published by Credit Suisse at the start of this year, the investment bank stated that Western Union continues to see potential in the Ripple cryptocurrency and the XRP token and is testing the use cases. According to the report, Western Union is the global market leader with a 17% share of the cash and account transactions:

‘’Also evaluating Ripple ,although initially was less bullish, trials continue.’’

The report came as a surprise since Western Union wasn’t very enthusiastic about Ripple and the payment technology for the XRP token last year a few months after testing it. Western Union’s CEO Hikmet Ersek explained that when the company operates its own transfer system and enables the transfers five times cheaper than the ones done with XRP. Back in 2019, Molly Shea which is the company’s director-general for the Asia Pacific, explained that Western Union will continue to use crypto if they prove to be more efficient and cost-effective:

‘’When you think about cryptocurrencies, if those start to take off, we need to be ready. We need to be ready from a technology perspective. And we’ve got to be ready from – regulatory has to be there – but we constantly have to be looking for those trends where customers are looking and make sure that you’re ready to meet those needs and expectations.’’

The Credit Suisse report said that cryptocurrencies such as the Ripple cryptocurrency will have little impact on the consumer-to-consumer market and the platforms such as Remitly and Western Union already developed a system that enables real-time cross border payments at low costs. The report also pointed out that there is a potential for payments from emerging markets and the ‘’netting’’ process works extremely well for the high-volume countries but the ‘’challenges remain in the currencies of low volume emerging markets.’’

Credit Suisse argued that the B2B area between companies will provide huge potential for growth as the existing solutions require long fees and processing time.