Revolutionizing Remittances in Thailand
In an exciting move, Thai fintech DeeMoney has taken a significant step by deepening its integration with RippleNet, a blockchain-based financial services network. This partnership is paving the way for a new era of remittances in Thailand, enhancing Ripple’s footprint in the Asian market. As the first non-bank institution in Thailand to embrace RippleNet, DeeMoney has already established a streamlined system for inbound transfers across various corridors, including regions like the Middle East, Gulf, South Korea, Indonesia, Singapore, and Israel.
The Timing Couldn’t Be Better
The timing of this move is crucial. Interestingly, the forecast for the value of remittances in Thailand is set to exceed a whopping $1 billion by the end of 2020, up from $623 million in 2018 and $850 million in 2019. With around a million Thai nationals sending money back home, the race for banks and fintechs to establish faster and more affordable channels for cross-border payments is heating up. It’s like a financial Olympics, only with less sweat and more spreadsheets!
Overcoming Regulatory Hurdles
DeeMoney hasn’t had an easy ride. Thai non-banking institutions like DeeMoney are subject to stricter regulations compared to their traditional banking counterparts, facing licensing requirements and daily transfer limits that sometimes feel like a game of financial Twister. However, DeeMoney proudly became the first non-bank provider to secure special licenses from the central bank last year, unlocking new avenues for international money transfers and e-payment services. Talk about playing by the rules and still winning!
Galvanizing Change in Finance
According to DeeMoney’s CEO, Aswin Phlaphongphanich, the shared vision between DeeMoney and Ripple is to democratize finance in Thailand. This collaboration aims to make cross-border transactions not only more accessible but also more efficient for those often left behind by traditional banking systems. In this quest, they are akin to modern-day Robin Hoods, but instead of stealing from the rich, they’re aiming to enrich the experience for the underbanked.
Ripple’s Broadening Horizons
While DeeMoney is making its mark, Ripple is also busy expanding its influence. Following three new partnerships with money transfer companies in South Korea, it seems Ripple is sprinting towards a significant presence in Asia. With a previous milestone deal with MoneyGram, Ripple is ensuring that it’s not just a participant in the race but a frontrunner. Additionally, a partnership with Azimo has formed an on-demand liquidity corridor to the Philippines, using XRP as a bridge currency. This innovative strategy could slash liquidity costs by up to 60%, making traditional banking solutions look like they’re running in slow motion.
