Visa, an American multinational financial services corporation headquartered in Foster City, California, United States has acquired Ripple partner Earthport for $250.6 million, reported CCN. Earthport is a British company that promotes global transactions for banks and corporations. The company has been partners with the blockchain-based payment network Ripple, since 2015.
Visa and Earthport
In January 2016, Earthport had started the world’s premier shared ledger hub (DLH). Applying DLH, Earthport customers can utilize the group’s distributed ledger technology in a manageable and economical separate API — a first for the commercial business. Earthport has clients such as Ripple, Bank of America, Hyperwallet, Transferwise, Payoneer, and Japan Post Bank.
Visa International Service Association, a section of Visa Inc. is proposing 30 pence per share of the Earthport. This is four times the amount of the company’s Monday closing share value of 7.45 pence.
Under the amalgamation, Visa spent four times Earthport’s closing stock price on December 26. Visa was intrigued in obtaining Earthport because it desires to develop its cross-border payments market, which fastened 10% in the financial cycle of 2018. Earthport also said that Visa’s offer was legitimate and feasible and that it would suggest its stockholders take up the all-cash proposal. It also stated that it proposes an economical option for regular payments methods by providing banks and money transfer companies to have a unique connection instead of various links with many payments carriers around the world.
As per the British Law, Earthport has status as an Authorised Payments Institution (API). It is managed and administered in much the equivalent way as its clients and partners. The company is backed by powerful companies such as Oppenheimer Funds, Wellington Management, Schroder Investment Management, and International Finance Corporation.
Earthport’s service enables its users to get firsthand access to the regional banks where payments require to be transferred. Eliminating the complexities, concealed charges and lack of clarity encountered in today’s conventional cross-border payments.
Just a few days ago, Western Union, an American financial services company had partnered with Ripple Labs to test blockchain payments and it is also thinking about adopting cryptocurrencies. The profound understanding of global money transfer makes WU favorably placed to profit from the cryptocurrency progress in the long-term than any other new companies, said the president of Western Union Global Money Transfer Odilon Almeida
Almeida further added that it will not be a big deal for WU to add a cryptocurrency to its customer options right now because the company is already been transferring money digitally for two decades. He also said that cryptocurrencies have so far disappointed to gain full recognition because they have yet to understand three elements: governance, compliance, and volatility.
There are many inherent applications for the financial services sector, and WU is investing in discovering those that perfectly suitable for their platform. Lately, WU partnered with Ripple Labs to examine whether transferring payments by blockchain was quicker and less expensive. The tests are open-ended.
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