In a significant move to modernize international transactions, American Express has unveiled a new blockchain-powered solution for cross-border B2B payments. Its FX International Payments (FXIP) division is collaborating with Ripple to bring this technology to market, promising faster settlement times and reduced costs.
Santander UK has been chosen as the inaugural banking partner to launch this new transaction channel, with potential for substantial future expansion.
How Blockchain Enhances B2B Payments
By integrating Ripple’s technology, specifically its RippleNet network, into the FXIP platform, American Express can now process non-card payments with greater efficiency. This integration allows payments to flow through a real-time network, fundamentally improving upon traditional methods.
Key benefits include:
- Simplified Intermediary Connections: Reducing the number of touchpoints and complexities involved in moving money across borders.
- Instant Transaction Visibility: Providing both senders and receivers with immediate, end-to-end tracking of a payment's status and associated fees.
- Faster Settlement: Drastically cutting down the time it takes for funds to reach their final destination.
Executive Insights on the Partnership
Industry leaders see this as a transformative step. Greg Keeley, Executive Vice President of Global Corporate Payments at American Express, stated, “We’ve already seen evidence that blockchain technology is playing a transformational role in the way customers are served. This partnership not only helps decrease processing times but also makes our transactions more effective for our customers.”
Echoing this sentiment, José Luis Calderón, Global Head of Santander Global Transaction Banking, added, “This blockchain solution opens up a new channel between the US and the UK and presents significant opportunity for payments globally. Collaborating with forward-thinking businesses has enabled us to deliver this cutting-edge, secure, friction-free payment solution.”
The Initial Use Case and Future Potential
The service is initially focused on enabling instant, trackable payments from American Express customers in the United States to Santander bank accounts in the United Kingdom. This demonstrates a practical application for faster corporate remittances.
Looking ahead, RippleNet’s global architecture offers the capability to connect American Express with financial institutions and customers worldwide, paving the way for a vastly expanded international payment ecosystem. For businesses looking to stay ahead, understanding these new payment rails is crucial. 👉 Explore advanced cross-border payment strategies
Frequently Asked Questions
What is the core benefit of using blockchain for B2B payments?
Blockchain technology streamlines cross-border transactions by creating a decentralized ledger that all parties can trust. This reduces reliance on multiple intermediaries, cuts down processing times from days to minutes, and provides unparalleled transparency into each step of the payment chain.
How does RippleNet improve upon traditional SWIFT payments?
While the traditional SWIFT network relies on a messaging system that often involves corresponding banks and multi-day settlement, RippleNet uses blockchain to facilitate faster, direct value transfer. It offers real-time tracking and greater predictability in transaction costs and timing.
Is this American Express service available to all businesses?
Initially, the service is launched in partnership with Santander UK, facilitating payments between the US and the UK. Availability for other corridors and businesses is expected to expand as the platform grows and integrates with more banking partners on the Ripple network.
Are blockchain-based payments secure?
Yes, transactions on a distributed ledger like the one used by Ripple are cryptographically secured and recorded across multiple nodes, making them highly resistant to tampering and fraud. This provides a secure and reliable alternative to traditional payment methods.
What does this mean for the future of international transactions?
This partnership signals a major shift towards the adoption of blockchain in mainstream finance. It highlights a growing demand for faster, cheaper, and more transparent global payment solutions, setting a new standard for how businesses will move money internationally.