Singapore-based payment solution provider FOMO Pay has teamed up with Ripple to use the company’s cryptocurrency-powered technology to improve cross-border treasury flows, according to a press release.
“On-Demand Liquidity (ODL) leverages XRP, the digital asset built for payments as a bridge between two fiat currencies, enabling instant and low-cost settlement without the need to hold pre-funded capital in a destination market,” the release stated
ODL has been mainly been used for cross-border payments to help payment services providers (PSPs) and small- to medium-sized businesses (SMBs) manage trapped capital that could be better used to help their companies grow and scale.
But traditional treasury payments come with the same pain points and friction as cross-border payments because of the outdated infrastructure used in correspondent banking, Ripple said in the release, noting that about $3.5 billion is spent each year addressing treasury and liquidity issues.
“By leveraging ODL for treasury payments, FOMO Pay is able to get 24/7 … access to liquidity for [euros and U.S. dollars], thereby enabling same-day settlement globally,” the release stated. “ODL for treasury payments makes it easy for PSPs like FOMO Pay to improve internal business cash flows, thereby allowing them to reduce business costs and improve operations.”
Before ODL, FOMO Pay’s treasury managers were forced to use other modes of payment in euros and dollars, with money taking up to two days to arrive, according to the release.
Ripple has worked with several companies since launching its ODL offering last year, including a partnership with Tranglo announced in March.
“Our remittance partners want to enter markets as fast as possible at the lowest cost,” Tranglo Group CEO Jacky Lee said earlier this year. “ODL offers just that: they can start sending payments without locking in funds at different financial intermediaries, which can be costly and time-consuming.”