Ripple has activated a credit function in RippleNet for small and medium-sized companies and has also announced a partnership with Lemon Way.
Corporate financing via traditional bank loans is fraught with bureaucratic hurdles and is often tough in practice. Ripple wants to simplify the process with a view to small and medium-sized enterprises (SMEs) and is presenting a newly activated beta function in RippleNet.
In the future, companies will also be able to take out loans via its ODL payment solution
The abbreviation stands for On-Demand Liquidity, a software solution tailored for interbank transactions in which the in-house XRP is used as a bridge currency for fast and inexpensive transactions between financial institutions. With pre-financed liquidity accounts, transactions can be quickly distributed across the globe using ODL. Banks can access an XRP token pool. The original national currency is first exchanged for XRP and then changed to the target currency when the transaction is completed.
Limited access to working capital is a major barrier to growth for many companies. Unlike established companies that have large balance sheets that allow them to scale their business quickly, many fintechs and small and medium-sized enterprises (SMBs) lack the capital and resources to be competitive,
it says in the press release. RippleNet customers who use the ODL payment solution can use the line-of-credit function to purchase XRP from Ripple on credit for appropriate fees. Various Ripple customers have already tested the service as part of a pilot program.
True to the motto „Send Now, Pay Later“, customers can bypass the slow grinding mill when taking out a bank loan and quickly pump up the company with liquid funds.
The feature also opens up the possibility of using the capital freed up from pre-funded accounts and continuing to invest in their business in order to open up new markets and reach new customers.
This gives small businesses in particular the opportunity to participate in global payment transactions quickly and with low fees.
Ripple partnership with Lemon Way
In addition, Ripple has announced a new partnership with the company Lemon Way. The fintech develops payment solutions for online marketplaces and crowdfunding projects. The partnership means that Lemon Way will in future be connected to the payment service provider Nium via the RippleNet hub.
More than 1,400 European marketplaces, including 200 crowdfunding platforms, are already using Lemon Way’s payment services. In view of the constantly increasing transaction volumes, the company docks with RippleNet in order to process transactions in cross-border payment transactions more quickly.
Martin-Pierre Gaultier, Chief Commercial and Marketing Officer of Lemon Way shares in the press release With:
As an innovative company, we are always looking for new business models and technological capabilities that will enable us to offer better services to our dealers. Our partnership with Ripple is a testament to this, and we are excited to offer faster, more cost-effective withdrawals to support the evolving needs of our customers and merchants.
The connection to RippleNet enables Lemon Way to process transactions with financial institutions in real time and at low fees. This is an important step to win new customers and also anchor the Ripple payment infrastructure a little more in online trading.