Published: Sat, March 10, 2018
Business | By Kate Woods

Japanese Banks to Implement Ripple-Powered Payments App

Japanese Banks to Implement Ripple-Powered Payments App

"MoneyTap" is the first mobile app of its kind to be developed and used by multiple, different banks in the country.

Resona Bank, Suruga Bank and SBI Net Sumishin Bank will commence the process of using the application in the coming fall, while the rest will initiate the program step-by-step afterwards.

Other banks in the consortium will introduce the app to their customers over the next three to four years, Yoshikawa said.

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The imminent launch of the Money Tap app will be quite impactful on Japan's existing financial ecosystem, as the consortium of 61 banks accounts for about 80 percent of the country's banking assets. With the launch of MoneyTap, nearly the entire population of Japan will be connected to the on-demand payment facility.

Flexibility with domestic payments is limited in Japan: transactions must occur on weekdays and between 8:30 am and 3:30 pm or risk delays. The Japan Bank Consortium has opted for Ripple's blockchain technology to give customers the opportunity to manage bank-to-bank cash transfers around the clock in real time.

"We are proud to leverage Ripple's blockchain technology through our new mobile app, MoneyTap, to improve the payments infrastructure in Japan". It will enable customers of the banks in the consortium to be able to settle payments through their mobile phones instantly at any time of day.

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Japan recently changed the law to require banks to work with registered third parties that seek to connect to their customers' accounts using application programming interface technology. While the software is focused on domestic transfers, the group will seek to expand it to cross-border payments and interbank settlements in the future, she added. Compared to the current payment system that charges banking and ATM fees, the Ripple-powered app will be much more affordable.

However, the power of blockchain can be applied to solving domestic payment issues as well.

"We're proud to provide this production-ready technology that not only improves the worldwide payments experience, but also have applications for domestic payments infrastructure".

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