After rumors of Alibaba running a Ripple validator node in China surfaced, people started wondering if Ripple is planning on breaking into the Chinese market. Many companies are making overtures in the Middle Kingdom, so it’s no surprise that yes Ripple does have plans for China.
Ripple’s Chinese Connection
Right now Ripple is offering both payment processing services through the xCurrent system, an essential part of making mobile payments, and xRapid system, a tool providing ready access to liquidity. They also offer a business-to-business (B2B) mobile payments system in xVia creating a suite of technology that could be more than lucrative in the Profitable and complex Chinese markets. Right now Ripple has more than ninety customers with more than seventy-five commercially deploying the potent system, making them a big name in the industry with Santander, Westpac, and RBC among their partners. They have additional clout thanks to fundraising efforts that have produced nearly $100 million in invested revenue so far, enabling them to take on the popular Swift messaging system.
For their part Ripple brings impactful cross-border payments to the table in their system making them more than attractive to Chinese companies doing international business. According to a Coindesk report, China’s cross-border e-commerce operations accounts for approximately 20 percent of the nation’s foreign trade, making Ripple’s interest in the Chinese market logical and potentially profitable. According to Brad Garlinghouse, Ripple’s CEO, the company is going to try to break into the market over the next five years.
Fluctuations and the Future
That five-year plan may be a slight optimistic over estimation, due in no small part to fluctuations and a reshuffling of competing companies in the Chinese market. But Garlinghouse plans to secure a foot hold in overseas traffic and be bought out by a bigger firm operating in the country. This plan leaves a lot to chance but it is not infeasible. Right now Ripple has made some healthy investments in the plan and they hope to land some B2B traffic first to make them more appealing to potential buyers.