American Express Joins RippleNet for Cross-Border Payments between USA and UK

An American Express credit card is seen on a computer keyboard in this

American Express and Santander have partnered with financial technology firm Ripple to speed up cross-border payments between the US and the U.K.by using blockchain technology.

The new payment method is one of the first major uses of blockchain technology, according to Reuters.

For those unfamiliar with blockchain technology, it can be described in simple terms as a secure method for electronically transferring money or files using decentralized, distributed computers that record the path of each transaction as it moves along, block-to-block, until it reaches its intended destination.

Ripple will be integrated into the American Express FXIP platform, meaning non-card payments can be processed through its real-time payment network. Compared with traditional payment processes, blockchain-enabled payments improve global transactions by simplifying connections with intermediaries and providing immediate end-to-end visibility into the transaction status and cost. He expressed further optimism for growing the new partnership, potentially helping other American Express customers.

"Not only does this partnership with Ripple help decrease the time it takes for worldwide transactions to be processed, it can make our transactions more effective for our customers", Keeley added. Its customers will be connected to Santander's in the United Kingdom via the Ripple network, providing instant, trackable, cross-border payments.

Marc Gordon, EVP and CIO at American Express, says the deal "represents the next step forward on our blockchain journey, evolving the way we move money around the world".

With the new programme, which is not a trial but a full-scale rollout, American Express's FX International Payments (FXIP) business will use the crypto company Ripple to make a transatlantic payment channel between the United States and the UK. The company has selected Santander UK as a partner in order to introduce this new payment channel.

The system was elaborated in cooperation with Ripple FinTech company and British Santander bank.

Garlinghouse responded by saying "transfers that used to take days will be completed in real time, allowing money to move as fast as businesses move today".

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