Blockchain payments firm Ripple announced back in February, 2020, that money transfer company Azimo has adopted Ripple’s On-Demand Liquidity solution (ODL) which uses the XRP cryptocurrency. The company will use XRP for transfers to the Philippines with plans to expand ODL to other markets in the future.
Azimo is based in the UK, Poland and the Netherlands and to date more than a million customers have used its platform. In 2019 it ranked in the Sunday Times Tech Track 100 fastest growing UK companies. It made the list after experiencing an average revenue growth rate of 72.44% over three years.
Although its 2018 revenues were just £10.8 million ($14m), in 2019 it processed more than $1 billion in transfers.
Three weeks ago the money transfer company secured €20 million ($22m) in venture debt financing from the European Investment Bank (EIB).
“We’ve been interested for a long time in the potential of digital assets like XRP to make cross-border payments better for customers,” said Richard Ambrose, CEO of Azimo. ”Ripple’s ODL solution has significantly reduced the cost and delivery time for cross-border transfers, and our customers are seeing the benefits.”
He continued: “As more banks and financial institutions use ODL, we believe it has the potential to replace current methods of foreign exchange trading and to reduce settlement time to close to zero.”
Azimo, Europe’s leading digital money transfer service, has partnered with open banking payment provider Trustly to meet growing demand for cross-border payments in Europe.
The partnership will let customers pay in a fast, simple, and secure way and is yet another sign of the shift towards digital remittances.
“Many of our customers, particularly in the Nordics, prefer paying directly from their online bank,” says Dora Ziambra, Chief Operating Officer at Azimo. “By offering Trustly, we help customers send money to their loved ones even more quickly – with even less friction.”
Trustly is available to all Azimo customers sending from the Nordics, the Baltics, Germany, Austria and Poland. Unlike traditional payment methods, customers don’t need to enter card numbers or bank details manually. All they have to do is log into their online bank and approve the payment.
Open banking payment solutions like Trustly are becoming increasingly popular among digital money transfer providers because of the simplicity and security they offer to migrant workers.
Innovation in the payments industry throughout the pandemic has accelerated this shift. In fact, Juniper Research expects us to see 2,800% growth in open banking in the next five years. According to the 2021 study, global payments facilitated by open banking will exceed $116bn by 2026.
Digital remittances too have exploded over the course of the pandemic, as migrant workers become increasingly comfortable with online transactions for cross-border transfers.
If migrant workers are to access more affordable sending solutions, digital money transfer service providers like Azimo must continue to adopt new technologies that benefit senders and receivers. The adoption of open banking is just one example.
Luca Giannone, Director of Financial Services at Trustly, says: “Open banking is on the rise, and people across Europe increasingly prefer to pay directly from their bank accounts. Azimo is keenly focused on offering the best customer experience possible, and we’re proud that Trustly’s open banking payments are now a part of that.”