Ripple’s official blog page announced the partnership with its Middle Eastern financial service partner, Pyypl, to create the first On-Demand Liquidity service in the Middle East.
This ODL service aims to provide a smoother and quicker transaction model between payment models. The ODL service uses the Ripple XRP token to eliminate any additional costs in payment transfers.
Ripple and Pyypl aim to target Small and Medium-Sized enterprises to provide them a means of scaling their business quicker than a more traditional model.
The Ripple XRP token provides these SMEs with capital that they could not achieve in a traditional financial institution.
More importantly, Ripple aims to reach the SMEs underserved by traditional financing methods in the MENA area.
Because of these aspirations, Ripple claims to be the first cryptocurrency to solve the trillion-dollar problem through cross-border payments.
The United Arab Emirates will be the first to experience the ODL service powered by the two partners. As soon as the ODL service expands to other countries, clients can transfer funds to and from numerous countries.
The Middle East currently houses two of the largest remittance corridors, with UAE and Saudi Arabia contributing a total of $78 billion in payments during 2020. Furthermore, the Middle East experienced a rapid expansion in the digital transition.
According to Pyypl CEO Antti Arponen, the company is excited about its partnership with Ripple. Through this partnership, the company can efficiently reduce “capital inefficiencies with ODL and look forward to an exciting rollout across the region.”
