The firm behind the third largest cryptocurrency, Ripple has been successful in keeping a hold of its priority target market which is China. This is thanks to the approval of LianLian’s joint venture American Express to process card payments in China.
The operation of American Express was given the green light by China which makes it the first American firm to be given a direct access to the China e-commerce market. This approval gives American Express the power to resolve payments and transactions in Yuan. The settlement of payments can be done through its joint venture LianLian Group which is one of Ripple’s clients.
American Express is another global payment platform similar to MasterCard which has previously shown some interest in the market in China. This market is thought to be the biggest card market by recent analyses. Through this, the move for a joint venture with LianLian Group was born and later became the first payment processing venture which operates outside the state-controlled, UnionPay network.
This joint venture is now teamed up with RippleNet in order to pride seamless and faster global payment services to the Chinese e-commerce market. It can process and settle payments in Chinese Yuan Renminbi (CYN) currency unit which can be gained through establishing a network with its partner.
The venture is called Express Technology Service Co. is expected by the Chinese government to complete preparation for operation within a year.
As mentioned by ZyCrypto:
“American Express and LianLian Group had been members of RippleNet. AmEx joined RippleNet late last year, with the aim of rendering better services to Small and Medium Enterprises in payment processing. LianLianPay which joined the platform early this year already has over 150 million registered customers.”
By using the Ripple blockchain, LianLian can settle e-commerce payments in China. In addition to this is also uses Ripple’s xCurrent to settle cross-border transactions.
For some time now, Ripple has been attempting to enter the Chinese market and now the government seems to have straightened out things for the San Francisco based firm.
Form reports published earlier in the year, Sagar Sarbhai, the head of government and regulatory relationship for the Asia Pacific at Ripple, has said that it was still a bit too soon to discuss any such moves. He went on further to say that Ripple would definitely launch its decentralised financial tools into China market to settle cross-border payment issues.
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