Today, we can instantly send a photo, message or video to billions of people and businesses around the world from a phone, laptop—even through Alexa.
Yet, simple and fast payments are still not possible. In this always-on world, where everyone carries a computer in their pocket, why is it easier to send a picture of a 5 dollar bill than it is to actually send 5 dollars?
Unlike email and SMS, where there is a single network for the entire world, the payments infrastructure consists of hundreds of isolated networks that don’t speak to each other. Imagine how limited SMS would be if messages couldn’t be sent between the different mobile providers. We would all send a lot fewer text messages and be less connected to our friends and family.
If sending a payment were as seamless as sending an email or text, we would all send more payments quickly and easily around the world.
Tomorrow’s Payment Network Will Be Open
In the near future, a single, global payment network will enable anyone to easily pay any person or business instantly. Everyone, everywhere will tap into the power of this network, dozens of times a day, sending payments both large and small. Payments will no longer run over fragmented networks using proprietary standards to complicated account numbers; but rather, they will use a united network in which all payment companies participate—one built for today’s consumers and businesses.
To achieve this vision, today, Ripple joins over 40 global companies and nonprofits as a member of the newly formed Open Payments Coalition launching PayID, the universal payment identifier. PayID is a free and open standard that allows for interoperability between payment networks.
PayID allows for organic growth where no single company can control or set the terms for joining. This solution is built around people, replacing complex account numbers with simple names that are easy to understand, remember and even type. PayID works across any payment network or currency—be it fiat or digital.
PayID Enhances RippleNet
An open payment network that unites everyone around the globe is a valuable resource for every participant, and an open network built on open standards enables innovation and growth—similar to the adoption of the internet the mobile phone. PayID is one important step in the journey to this open global payment experience.
Ripple’s global payment network, RippleNet, is integrating PayID to bring further interoperability into cross-border payments. The mission and work of the Coalition aligns with Ripple’s founding vision—enabling the world to move value like it moves information today, a concept we refer to as the Internet of Value (IoV).
RippleNet and RippleNet’s On-Demand Liquidity (ODL) service empowers financial institutions to instantly, reliably and cost-effectively send global payments by leveraging blockchain technology and the digital asset XRP. Taken together, Ripple’s innovative solutions, combined with the power of the Open Payments Coalition’s efforts, are transforming global payments for everyone, everywhere.
By enabling a world where money moves as easily as information, PayID drives digital payments forward, simplifying global payments for all and brings the world one step closer to realizing the IoV. Ripple is proud to be among this coalition of industry leaders helping to establish this much-needed open standard for interoperability, so that IoV can become a reality.