SBI Partners With Hamamatsu Iwata Bank to Use Ripple for International Transactions

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SBI Partners With Hamamatsu Iwata Bank to Use Ripple for International Transactions
SBI Partners With Hamamatsu Iwata Bank to Use Ripple for International Transactions

SBI Remit announced a new partnership with Hamamatsu Iwata Credit Bank to use RippleNet technology for international transfers.

Ripple to Operate International Transfer Services

SBI Remit, a subsidiary of Japanese banking giant SBI, and Hamamatsu Iwata Credit Bank, a regional credit union, will soon use Ripple to operate remittance services.

The service is scheduled to start on July 12 and will use RippleNet, a proprietary distributed ledger technology with a transaction time of two seconds and a fee of just a few cents.

“Our mission is to provide remittance-focused financial services to overseas residents. We use Ripple’s distributed ledger technology, which is characterized by fast deposits and low fees, ”a press release said yesterday.

The Reason RippleNet was Chosen

The press release indicated that the negative impact (on businesses and financial services) of the ongoing coronavirus pandemic is the main cause of the Ripple onboarding.

“Immigration restrictions continue due to the recent spread of the new COVID-19 worldwide, but the Japanese government is expected to gradually relax the immigration restrictions in view of the infection situation,” the release read, adding:

“Therefore, international remittance needs are expected to increase in the medium to long term.”

It also pointed out that in Shizuoka Prefecture, where Hamamatsu Iwata Credit Bank is located, production accounts for one-third of the county’s total production value and employs many foreign workers, many of whom are sending money back to their home countries.