RedotPay Partners with Ripple to Enhance Stablecoin Transfers

RedotPay has made headlines with its new partnership with Ripple, aimed at enhancing its stablecoin payout system and providing more accessible, low-cost cross-border transaction options. The fintech company is now set to introduce its “Send Crypto, Receive NGN” feature, which enables users to convert digital assets into Nigerian naira (NGN) via Ripple Payments, a licensed solution dedicated to facilitating cross-border transactions.

Key Takeaways

RedotPay is teaming up with Ripple to improve stablecoin payment systems.
The new feature allows for quick conversion of cryptocurrencies into Nigerian naira (NGN).
Users can benefit from lower fees compared to traditional remittance methods.
This partnership seeks to address existing inefficiencies in global remittance services.
RedotPay aims to make stablecoin transactions as straightforward as local currency payments.

Ripple

Crypto-to-NGN Transfers

The newly launched NGN payout feature allows verified users with local bank accounts to convert various supported cryptocurrencies directly into NGN, with transactions typically settled in mere minutes. RedotPay emphasizes that this integration is designed to enhance the user experience and offer a cost-effective alternative compared to conventional remittance methods.

Michael Gao, the CEO and Co-Founder of RedotPay, described the near-instant NGN payouts as a significant achievement for the platform. He emphasized that the company's mission is to make stablecoin payments “as simple to use as local currency,” enabling users to send XRP and other supported digital assets while receiving NGN securely and swiftly. Gao highlighted that the partnership with Ripple is crucial in expanding RedotPay’s services on a global scale, enhancing reliability and accessibility.

Addressing Remittance Challenges

Global remittances persistently grapple with structural inefficiencies. Traditional money transfers often incur high fees averaging around 6.49% and may take one to five business days to settle. These challenges have driven the adoption of digital alternatives, with Chainalysis identifying the Asia Pacific region as a key area for the rapid growth of on-chain stablecoin utilization, especially for trading and remittances.

RedotPay aims to tackle these issues by utilizing Ripple Payments' blockchain technology to ensure transparent pricing and faster transactions. The NGN payout feature accommodates a broad array of cryptocurrencies, including USDC, USDT, BTC, ETH, SOL, TON, S, TRX, XRP, and BNB, with plans to integrate Ripple’s RLUSD in the future. Upon sending a compatible asset through RedotPay, the designated bank account automatically receives NGN.

Jack Cullinane, Ripple’s Head of Commercial for Asia Pacific, remarked that this collaboration showcases the practical benefits of Ripple Payments in simplifying cross-border transactions and enhancing accessibility for consumers and businesses alike.

The “Send Crypto, Receive NGN” feature builds upon RedotPay’s existing services, which also offer payouts in Brazilian real (BRL) and Mexican pesos (MXN). This new service is particularly aimed at globally mobile individuals such as digital nomads, freelancers, and entrepreneurs, as well as expatriates who need efficient methods to send funds back home. By expanding its stablecoin payment offerings, RedotPay seeks to enhance access in emerging markets that are still reliant on slow and costly traditional remittance services.

Expanding Global Use of Stablecoins

With the partnership with Ripple fortifying its settlement infrastructure, RedotPay intends to scale its regional services, delivering faster and more affordable crypto-enabled remittances to underbanked markets.