- Siam Bank to launch blockchain version of app, known as SCB Easy, which will be run by Ripple
- App has been shown to authorise cross border payments in as little as 40 seconds – suggesting a major new level of speed for customers
- “With our service, their loved ones from abroad can transfer payment and receive money immediately”, said a spokesperson
A major commercial bank in Thailand has announced that it will adopt Ripple, a blockchain-powered payments platform.
The Siam Commercial Bank (SCB) said that it would develop a payment app which worked on Ripple’s blockchain network.
The app, which will be called SCB Easy, is designed to make international money transfer as easy and simple as possible – and will be open to the bank’s 16m global customers.
Various Southeast Asian countries are expected to benefit from the development.
These include Laos, Vietnam and Cambodia, as well as Myanmar.
Ripple helps financial institutions overcome the key problem of liquidity.
By harnessing the blockchain, the bank can make liquidity easier and more plentiful.
The news is significant, although not entirely unexpected given the high amount of demand present in Southeast Asia for this sort of service.
It is believed, for example, that just over two-thirds of the Thai population use mobile applications for payments services.
However, the new app will, in theory at least, permit organisations to allow more cost-effective and speed-focused transfers.
Some tests have placed the speed of the blockchain-powered version of the app at as low as 40 seconds.
According to Arthit Sriumporn, who is the SVP of commercial banking at SCB, the move will let people make money transfers “immediately”.
“It is so difficult to send and receive money today”, he said.
“People must physically go to a bank branch, fill out long and complicated forms and wait for payments to be received—with no transparency. With our service, their loved ones from abroad can transfer payment and receive money immediately”, said Sriumporn.
“We are changing lives with Ripple”, he added.
There was no immediate confirmation as to whether the SCB would use just On-Demand Liquidity, or whether they would also use the XRP token.
The blockchain development is not the only one on the cards for the SCB.
The bank also now plans to launch a certain type of international QR code payment, aimed primarily at visitors.
Those visiting Thailand will be able to scan QR codes in order to pay for items – removing the need for foreign exchange altogether.
According to Sriumporn, this will lead to making life much easier.
“Imagine you are a tourist coming to Thailand, and you can use your home country mobile application to scan for payment and eliminate the need to exchange for local currency”, he said.
“You can use your mobile app, scan the QR payment and receive goods right away.”
Ripple and similar innovations are changing the world with their cross border payments functions.
Learn more about the latest developments in this sector here.
