Ripple update: Companies losing out on transaction costs?
First of all I firmly believe in XRP, not causing any FUD. I’m doing research (for a major bank) as some might know from a previous post.
Since XRP can provide instant settlement (within seconds) and have fees that are stupidly low compared to what clients pay right now…
It made me think… wouldn’t banks, or basically any company that profits from fees on payments, avoid using XRP in their business? For instance: a friend of mine owns a restaurant and every time a person pays by card he pays a fee of around € 0.02-0.04 (this isn’t even cross-border payments, so no exchange costs and such) and quarterly he pays a fee to use the infrastructure. For him, in the long-run, it would be ideal if there were no fees.
However, if banks/companies/payment providers lose out on the money they earn from every transaction on their network wouldn’t they simply lose out way too much money? I know that with xRapid it would free up Nostro/vostro accounts but I’m just kind of stuck with this right now.
Can anyone shed some light on this and give me some arguments that I could use to rebuttal this?
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
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