AmEx Teams Up With Ripple for Blockchain-Based International B2B Payments

In the latest example of the growing market for cross-border payments using blockchain technology, American Express Co. announced Thursday that business customers of its FX International Payments (FXIP) service can now use Ripple Labs Inc.’s blockchain-based RippleNet network for payments between the United States and the United Kingdom.

The two companies’ partner bank for the service is Santander UK, the British unit of Spanish banking giant Banco Santander S.A.

FXIP is a service for AmEx’s business customers that offers wire transfers, drafts, and related transactions in foreign currencies as well as U.S. dollars. Transactions typically need 24 to 48 hours for fulfillment, according to AmEx. But with RippleNet, payments from the U.S. to Santander UK accounts can occur instantly, AmEx said in a news release.

Its backers say blockchain, or distributed ledger, technology offers not only very fast payments, but transactions that are less costly and easier to track than those using traditional systems. In April, another big Spanish bank, BBVA, said it had completed what it called the first commercial money transfer across borders using blockchain technology. That transaction, which also used Ripple’s network, took place between Mexico and Spain.

“We’ve already seen evidence that blockchain technology is playing a transformational role in the way customers are served,” Greg Keeley, AmEx’s executive vice president of global corporate payments, said in a statement. “Not only does this partnership with Ripple help decrease the time it takes for international transactions to be processed, it can make our transactions more effective for our customers.”

The companies hinted that the service could expand to other countries, although they gave no details. “It is just the beginning, and we look forward to growing this partnership to help other American Express FXIP customers,” Brad Garlinghouse, chief executive of San Francisco-based Ripple, said in the release.

Pricing for Ripple-based transactions was not disclosed.