'Sending money with Ripple is 5-times more expensive than Western Union'

21 Jun, 2019 | Updated: 21 Jun, 2019
by Joeri Cant
News
'Sending money with Ripple is 5-times more expensive than Western Union'

Western Union’s CEO, Hikmet Ersek, is calling out Ripple by claiming that sending money with Ripple is actually 5 times more expensive, than sending money with Western Union.

During a session at Fortune’s inaugural Brainstorm Finance conference in Montauk, N.Y., the CEO of Western Union, Hikmet Ersek, claimed that Western Union has been testing Ripple technology, however, the company finds that sending money with Ripple is actually much more expensive than sedsending money with Western Union.

'Sending money with Ripple is 5-times more expensive than with Western Union', he said.

It seems, if we can take his word for it, that Ripple isn't living up to the expectation to be the cheapest way to move billions around at little or no costs.

The CEO added that despite his claim about Ripple, he is convinced that digital currencies and the blockchain have great potential of acting as a processing system for payments.

All-in-all, the company seems to be open to cryptocurrencies, and the CEO believes that Ripple does have a unique money transfer system and added that the global money transfer service is not done testing Ripple’s suite of cross-border payments just yet.

'We did a test with Ripple and we are still doing it. It’s still ongoing. We are looking at it and we are learning from Ripple.'

In regards to the Ripple partnership with international payments service MoneyGram, the CEO said that it sounded like a good deal.

'MoneyGram needed something, and Ripple needed something, so it sounds like a good deal.'

At the same roundtable discussion on the future of mobile payments hosted by Fortune, Ersek said his company has different needs than MoneyGram.

'We are in a different position than MoneyGram', the CEO said. 'We have our own settlement system which is extremely cost-efficient.'

About the competition that Facebook might offer, with its new Libra venture, the CEO said that they still have considerable work ahead having developing a full payment and money transmission system.

'The real cost is serving the customer in the last mile', he said. 'You have to be in the streets of Cairo, the streets of Nairobi. It took us many, many years to build a global system that moves $300 billion every year.'

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