Fomo Pay, Ripple partner to provide crypto-enabled payment service

Fomo Pay, a Singapore-based fintech startup, has partnered with American crypto solutions provider Ripple to improve its cross-border payment service.

Fomo Pay founder and CEO Louis Liu (right) / Photo credit: Fomo Pay

With the partnership, Fomo Pay will leverage Ripple’s blockchain-enabled solution to get access to 24/7 liquidity for fiat currencies such as euro and US dollar. This will allow for same-day transaction settlements globally, improving the firm’s current process where funds would take days to reach destination accounts.

Ripple’s solution uses XRP, an open-source token, as a bridge between two currencies, enabling institutions to facilitate faster and cheaper cross-border transactions.

Founded in 2015 by Louis Liu, Fomo Pay provides international money transfer services, digital tokens, and payment solutions for merchants. The company mainly targets emerging markets in Asia and Africa.

Meanwhile, Ripple was established in 2012, and its three main services are cross-border payments, crypto liquidity, and digital currency for central banks. The firm said it is using blockchain technology to tackle the issues associated with traditional treasury payments, which normally cost US$3.5 billion annually to address.

Global cross-border payment volume is projected to hit US$156 trillion this year with a compound annual growth rate of 5% from 2018 to 2022. Despite being a huge market, it is often plagued with problems such as lack of transparency, long settlement times, high costs, and limited accessibility.

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Update (Jul. 27, 13.55 p.m. SGT): This article was updated to include a revised description of the XRP token.