With each passing day, traditional payment methods are becoming outdated. The collapse of several major banks in the United States has significantly impacted customers’ confidence in the existing financial system.
Consequently, alternative solutions such as On-Demand Liquidity (ODL) and crypto payment service providers are gaining attention as viable alternatives.
According to a research report shared with Watcher Guru by CoinsPaid, a crypto payment ecosystem, merchants accepting crypto payments witness an average share of up to 22% in their overall payment transactions. This indicates the growing potential of crypto payments, with an average monthly turnover potential of $440,000.
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Despite the growing preference among users for DeFi (Decentralized Finance), numerous obstacles continue to exist. Issues such as price fluctuations, high fees associated with blockchain transactions, the complexity of maintaining payments, and a lack of automated reporting systems are significant challenges in this domain.
Nevertheless, various companies within the industry are making concerted efforts to simplify the process of transferring funds for users. For instance, Tranglo, a partner of Ripple, has collaborated with Lulu Money, a subsidiary of Lulu Financial Holdings based in Abu Dhabi. This partnership aims to provide individuals and businesses with streamlined, rapid, and secure fund transfer services, catering to their needs effectively.
As per the official announcement, Tranglo has achieved the remarkable feat of processing 80% of its payments in real-time. This is a significant improvement compared to the average industry standard of 1 to 5 business days for payment processing globally.
Solving Transfer Time Hurdles
Ripple made a strategic move in March 2021 by acquiring a 40% stake in Tranglo, intending to expand its services. Tranglo had previously enabled Ripple’s On-Demand Liquidity (ODL) service across 25 of its payment corridors in March of the previous year. This expansion followed a successful pilot deployment in September 2021.
Within the first 100 days, Tranglo processed over 250,000 transactions totaling $48 million. Tranglo Group’s CEO, Jacky Lee, highlighted that: “Lulu Money specializes in connecting end users with beneficiaries worldwide through accessible cross-border payments. We are confident the partnership will further lower the time it takes to send funds, thanks to Tranglo Connect’s real-time infrastructure and smart connection to our payout corridors.”
On the other hand, Richard Wason, the CEO of Lulu Financial Holdings, emphasized that the partnership would allow Tranglo to leverage its extensive network while also strengthening its payment infrastructure that connects various corridors. This collaboration aims to enhance the speed and reliability of transactions for both companies’ customers.
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Another Tranglo Middle East Expansion
Tranglo announced its expansion into the Middle East in the previous year’s third quarter. As part of their Middle East expansion program, the cross-border payment processing hub introduced a new payment corridor in the United Arab Emirates. This move aligns with Tranglo’s focus on investing in infrastructure and building networks to incorporate additional channels for their services.
During that period, Tranglo, a partner of Ripple, outlined a few reasons for selecting the UAE as its expansion destination. The Arab Gulf region had become a crucial area for cross-border payments. Tranglo specifically emphasized that the UAE holds a significant position as one of the leading countries in terms of both sending and receiving remittances globally.