Finastra Taps Ripple To Power Blockchain Payments

Real-time currency exchange and remittance network Ripple has teamed up with Finastra to allow banking customers to access RippleNet, its worldwide blockchain payments network.

Ripple said it will provide for more affordable, faster and more reliable payments. Users will be hosted on Ripple’s cloud solution and will be able to use On-Demand Liquidity, which will allow for the leveraging of XRP for cross-border payments.

“This partnership will enable Ripple to expand the reach and solutions for our partners and the footprint of RippleNet, while allowing customers to transact directly with each other,” said Marcus Treacher, SVP of customer success for Ripple.

Ripple’s more than 200 customers will also have access to Finastra’s banking network, which will let users on both sides partner up and access each other easily. Finastra’s banking customers currently process millions of transactions each month.

“Collaborating with a company like Ripple that harnesses innovative blockchain technology to provide fast and reliable cross-border payments is particularly beneficial for our customers in geographies where [the] cost of correspondent banking is high,” said Riteesh Singh, SVP, FMS for Finastra.

Earlier this month, it was reported that Vista Equity Partners was thinking about selling a stake Finastra. The sale could value Finastra at $10 billion, with debt included. Vista is collaborating with Goldman Sachs to look for companies that might be interested in buying. Vista could be looking to sell as much as 50 percent of the company.

FinTechs in Europe have been experiencing a rise in value as many investors look for alternatives to run-of-the-mill, brick-and-mortar banks. Digital banks are generally seen as more attractive, as they are no longer struggling to find a solid foothold after the financial crisis a decade ago.

Finastra has been successful, with $1.9 billion in annual revenue and 10,000 workers. The company has about $6 billion in debt.