UAE-based remittances firm partners with Ripple

What 

Al Fardan Exchange, a UAE-based money transfers company, has partnered with Ripple to ease money transfers across national borders 

Why 

It’s part of a broader move by these types of businesses to modernise legacy systems and diversify its client base 

What next 

The partnership will enable the company to instantly send money across the globe on the Ripple blockchain 

The story 

The money-transfers sector continues to grow in parallel with the increasing need of foreign workers to send remittances home. Blockchain technologies and cryptocurrencies offer a cheaper and faster way of doing this. 

“We are well into a digital future and payments powered by technology, which is becoming key in the region. This partnership underscores our commitment to offering new channels and opportunities for people to remit money more securely, with more flexibility and convenience,” Chief Executive of Al Fardan told The National. 

Remittance payments to low and middle-income countries increased by 7.3% in 2021 from the previous year, according to the World Bank, totalling $589 billion for the year. The cost of sending remittances remains an issue, the World Bank noted in the statement. “The cost of sending $200 across international borders continued to be too high, averaging 6.4% of the amount transferred in the first quarter of 2021.”