The power struggle for supremacy between Ripple and SWIFT in the payments industry is in a high trail. In trying to point out why Ripple is superior to SWIFT, the Sales Director of Ripple, Ross D’Arcy says the company (swift) does not put transaction speed as its priority and can influence the output of transactions, unlike Ripple payment system which is independent of the company itself.
In his words, D’Arcy said “I think Swift’s a really interesting example. Because Swift, if you think about it, kind of crosses the lines sometimes and plays a bit of a political role. We don’t see our customer’s transactions. Our customer’s transactions go over the internet. So Ripple could shut down as a business tomorrow and our customers could still transact using our software. The same wouldn’t be the case with Swift.”
The sales director spoke about this during the Shift Money fintech conference in Croatia. He further added that Ripple’s goal is to make payment as easy as sending an email, not like what SWIFT has to offer.
SWIFT has been the world’s leading communications company since 1973, enabling financial institutions to send and receive financial information securely. The system does not necessarily facilitate funds transfer but sends payment orders to the concerned financial institutions for appropriate actions to be taken.
Ripple, on the other hand, came on board in 2012 and came up with this robust system for making instant payments across the globe with currently over 200 clients in 6 continents. Ripple’s payment technology is out to disrupt the payment industry and that is the bone of contention with SWIFT. It’s product xRapid which works on the payment network Ripplenet also makes it superior as far as payment is concerned.
There were rumours that SWIFT was considering partnering with Ripple to improve its system which SWIFT vehemently denied. In fact, it sees Ripple’s blockchain based payment system as premature, which may be why the latter is developing a new API to further increase the speed of payments.
Ripple is determined to dominate the world of payment settlement and their system beats every other company in the same sector according to Weiss Ratings analysis. It will therefore not be an easy task for SWIFT to successfully outcompete Ripple in the industry.
Ripple CEO Brad Garlinghouse and SWIFT CEO Gottfried Leibbrandt are scheduled to meet in France on the 30th of January. It will be interesting to know the outcome of the meeting.