Ripple’s Growing Presence in Africa
Africa is proving to be a promising region for payment companies, with Ripple and its XRP token already making strides on the continent. According to the recently published African Blockchain Report 2022, there are currently 13 African countries that use the services of Ripple and its XRP token. This provides a strong indication of the potential for the growth of digital payments in Africa.
Untapped Potential in Africa
While Africa has made significant strides in recent years, the African Blockchain Report 2022 highlights the untapped potential within the region. As of now, the digital payments market in Africa is expected to grow by 20 percent by 2025, reaching a total turnover of USD 40 billion. However, many people on the continent are without a bank account or run a business without a bank account, which makes it extremely difficult to keep finances in order. Despite this, less than 10 percent of all payments in Africa are digital, leaving much room for significant growth by companies like Ripple.
Current Landscape of Digital Payments in Africa
Africa is lagging behind the rest of the world in terms of digital payments and banking. This can be attributed to a lack of digital infrastructure, leading to the proliferation of cash-based transactions. The low banking penetration rate is largely due to low incomes, high fees, and a lack of access to banking services. Ripple sees a great opportunity to solve this problem through its On-Demand Liquidity (ODL) solution.
Ripple’s On-Demand Liquidity Solution
In the African Blockchain Report 2022, Ripple’s XRP-based On-Demand Liquidity (ODL) solution is highlighted as a key element in the company’s success in Africa. The ODL solution enables organizations to make global payments that arrive instantly and at a fraction of the cost. Parties on the sending and receiving side can use their own currencies, which are then bridged by XRP. This solution has proven to be extremely popular, especially in West Africa.
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Partnerships as a Key to Ripple’s Success in Africa
Ripple’s success in Africa can also be attributed to the company’s partnerships. The company has been working closely with local banks and financial institutions to facilitate better access to banking and payment services for businesses and individuals. Standard Bank, a South African bank, is one such partner that collaborated with CV VC, a venture capital investor focusing on blockchain technology, to produce the African Blockchain Report 2022.
The African Blockchain Report 2022 offers an optimistic outlook for the future of digital payments in Africa and highlights Ripple’s growing presence in the region. With its XRP-based On-Demand Liquidity solution, partnerships with local banks, and increasing demand for digital payment solutions, Ripple has the potential to make a significant impact on financial inclusion in Africa.