There are many countries all over the world which initiates billions of dollars of international remittances each and every year. This is the target market for ripple (XRP). This market is ideally occupied by most of the bank’s as well as the financial institutions. That is why Ripple (XRP) has not been able to gain a significant share in this market.
Is UK the perfect test market for Ripple (XRP)?
When you look at the UK, one thing which you will realize is that it initiates remittances of £ 8 billion each and every year. This is because of the 9 million migrant workers which work in the UK. That is why it is a huge international remittances market. The problem with current international remittances is that a significant amount of money is lost during the process of sending the money. That is why; the migrants lose a significant amount of money.
When you look at ripple (XRP), you will realize that the fees are on the lower side. Owing to this very reason, the overhead cost is on the lower side as well. This means that migrants will be able to send a smaller amount of money through the blockchain-based system as well. As a result, the remittances will actually increase even further. Since the UK has such a large migrant force, it is the perfect test market for ripple (XRP).
With more and more banks and financial institutions are joining ripple when it comes to initiating international remittances, it is becoming obvious that Ripple (XRP) is gaining a higher market share. With that being said, Ripple (XRP) will indeed be able to gain significantly if it is able to capture the UK market. The migrant labor workforce is slated to increase even further. Owing to this very reason, it can actually gain even more as the usage of the XRP token increases even further.
Banco Santander is an institution which has already signed up with ripple (XRP) in order to provide such facility to the customers. The fees are much lower for this financial institution. The customers will directly be able to use the app in order to initiate the international remittances. Moreover, the fees are is that anyone 3%. This is one of the main reasons why ripple (XRP) has a distinct advantage when it comes to international remittances.
All will now be dependent on the partnerships which ripple (XRP) is able to forge in the UK and the kind of fees which the banks and financial institutions partnered with ripple (XRP) charge their customers.