LFP164 – A Deep Dive Into Ripplenet, A Key 21stC Global Payments Approach, with Marcus Treacher SVP Customer Success Ripple


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By Mike Baliman. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Payments are being revolutionised. One of the most fascinating examples is Ripplenet – Ripple’s approach to inverting the old model of slow large payments to super-fast, immediate, small payments (the general trend) which will change payments forever. Ripplenet “an internet of value” is used by over 300 Financial Institutions in more than 45 countries, as a next gen global payments infrastructure.

Marcus has over 30 years of experience in transaction banking and payment technology, including 12 years at HSBC, being a member of the Global Board of SWIFT and an independent non-executive director of CHAPS Co, the UK’s RTGS clearing company.

In this show we start with the super-big picture of how payments have changed over the centuries, how the challenge is not simply tech but how people and organisations relate to this before spiraling in to a schematic overview of the three layers than amount to Ripple’s solution.

  • the lottery that is organising foreign holidays from the UK these days
  • Scotland being bigger than it looks
  • the UK leading the world in chaos as well as Fintech
  • bring live grouse to your Xmas party and you can entertain up to 30 people
  • the benefit of booking holidays via credit cards – so much easier to get ones money back
  • Marcus career history and journey through tech (including Cobol…), payments and consultancy
  • how the change in globalising society as well as the internet has led to different use cases from the 18th/19thC use cases which essentially were the concept behind oldskool payments mechanisms
  • cross-border payments are very difficult as the systems were built for times when they were rare
  • the first companies in the 16th/17thC and how they handled global payments – the first iteration
  • London money markets started with the need to source the global currency of the time Spanish Riyals which were widely accepted as a store of value
  • comparison of internet technology (IP) with where payments need to get to – a protocol of value
  • how human society and its stories (inc laws/regulations) always lag behind changes in technology
  • dopamine and getting tough things done
  • tech gets faster but in WFH mode the people go slower due to no physical adjacency and everything having a large overhead of organisation
  • Ripple’s customer base
  • Ripple moves billions of dollars using digital assets and direct connectivity
  • “The big challenge in getting the next generation of payments right is to take people with you, take the ecosystem with you.”
  • how many of their competitors of theirs failed
  • islands of payments and interconnectivity
  • cf computers pre internet – nothing to connect them
  • “creating an internet of money, an internet of value” – will enable the financial world to catch up with the information world
  • “that’s what we did … I genuinely believe Ripple is different”
  • blockchain as confusing terminology used to mean different things to different people
  • Ripplenet as three layers:
    1. The Scheme
      • a set of rules and regulations to determine standards, duties and responsibilities of members
      • as an example I got my holiday refund due to Mastercard’s scheme – not due to how it transfers money
      • started about 4yrs ago
      • a rethink of how to operate an open network (payments players can join – not closed to certain players only)
    2. Interconnecting ledgers
      • provider buys Ripple software and connects directly to each other cryptographically
      • payments exchanged between each two via simultaneous updating of their own private ledgers
      • ILP – inter-ledger protocol
      • Ripple do a few million such transactions per annum and are growing 10x per annum
      • infinitely scalable and “doesn’t cook the planet” (none of this everyone recomputing all transactions which doesn’t scale – with ILP your effort is linearly proportional to the number of transactions)
    3. Liquidity provision
      • a huge expense/hassle in current systems (as one needs a “float” or to fund while money slowly moving from A to B)
      • a much more classic blockchain – using consensus methods to keep it current which is far more efficient than proof of work
      • SWIFT uses different messages for moving payments and moving funding – similar parallel protocols within Ripplenet
      • runs on digital assets – XRP
      • so far delivered $2bn of liquidity into Mexico and Philippines with this approach
      • now only need to keep the currency in your own base – automatic translation at the point of swapping – no need to hold the other currency
      • “this transforms liquidity” – “on demand liquidity”
      • customer challenges with old systems in transferring money fast enough – Ripplenet obviates all that
  • what Ripple are looking for right now and the advantages for senders and receivers – take out huge amounts of costs

And much much more 🙂

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