Egypt’s largest bank by assets, National Bank of Egypt (NEB) is the latest bank to join Ripple’s payment network, RippleNet.
The deal will allow NEB to integrate RippleNet into its existing payment network to improve international payments and settlements, including the Arab Gulf states. Ripple’s technology helps banks speed up and streamline the way they transfer and receive payments around the world.
The World Bank statistics show that Egypt is in the top five remittance recipient countries, with migrants sending more than $29 billion in 2018. Egypt is also one of the countries with the highest cost of remittances in Africa. It costs an average of 6.22% to transfer the equivalent of $200 from Qatar to Egypt. From Kuwait to Egypt, it costs 3.22%, 3.55% from UAE and 5% from the U.S.
NBE Chairman Hisham Okasha said NBE’s deal with Ripple is the “first of its kind” among banks in Egypt and that it would allow the bank to better address the needs of clients.
Meanwhile, Dalia El-Baz, the vice-chairperson of the NBE said that the deal is a strategic move to expand the bank’s presence in the global remittance market. It will also give the bank widened access to new markets, improve liquidity management, and increase its foreign currency earnings.
What is RippleNet?
RippleNet is a blockchain-based payment solution built by Ripple. It connects banks, payment providers, and corporations to enable secure, fast, low-cost payment processing and settlement. With RippleNet, it is possible to independently validate transactions and allow for a seamless transfer of money in any form—USD, Pounds, Euro, XBT, and Ethereum.
Ripple says 300 companies use RippleNet in 40 countries while 24 are using its other product, the On-Demand Liquidity solution, including MoneyGram.
The National Bank of Egypt, however, is keen to use Ripple’s core technology to facilitate instant payments and settlements across the globe.