Japan’s SBI Group and Ripple Collaborate to Offer International Remittance Services in Three Countries
The SBI Group, a Japanese financial conglomerate, has partnered with SBI Ripple Asia to introduce Ripple’s XRP-enabled international remittance solution to bank accounts in the Philippines, Vietnam, and Indonesia. This collaboration aims to streamline international payments using XRP as a “bridge currency,” enabling quick and cost-effective money transfers.
SBI Remit, a subsidiary of the SBI Group, will process customer remittance requests in real time through its strategic alliance with Tranglo Pte. Ltd., a long-term Ripple partner. By leveraging Ripple’s payment solutions, SBI Remit has been facilitating international money transfers since 2017. In 2021, it became the first international remittance service in Japan to employ XRP as an intermediary currency between two legal currencies and crypto wallets in the Philippines.
With the expansion of their services to the Philippines, Vietnam, and Indonesia, SBI Remit aims to tap into high-volume remittance destinations in Southeast Asia. These countries were chosen based on their significant share of remittances sent to bank accounts. According to a World Bank report, in 2022, the Philippines received $38 billion in remittance flows, followed by Vietnam with $13 billion.
Why Target High-Volume Remittance Destinations in Southeast Asia?
The choice to focus on the Philippines, Vietnam, and Indonesia as remittance destinations is driven by their substantial number of remittances to bank accounts. These countries represent a significant market for international money transfers.
By leveraging Ripple’s XRP-enabled remittance solution, SBI Remit aims to provide efficient and cost-effective remittance services to individuals and businesses in Southeast Asia. This expansion aligns with SBI Holdings’ strategy to increase the number of countries where remittance is possible and expand services for corporate and inbound transactions.
In April, three Japanese banks – Yamaguchi Bank, Momiji Bank, and Kitakyushu Bank – also adopted the Ripple-based payment system MoneyTap to utilize its blockchain solution for international payments and peer-to-peer remittance.
SBI Holdings’ chairman and CEO, Yoshitaka Kitao, expressed the company’s commitment to further partnerships with Ripple and other fintech companies. Together, they will continue expanding their remittance services globally and explore opportunities for corporate transactions and inbound transactions.
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