New Ripple service enables XRP payments on credit for SMBs

Blockchain payments provider Ripple launched its "Line of Credit" service yesterday to cater to customers using On-Demand Liquidity to source capital on-demand to initiate cross-border payments at scale using the digital asset XRP. The service provides quick access to capital using a simple credit arrangement system, creating a financial service that ensures inclusion and helps accelerate business performance.

Such a scenario causes SMBs to turn towards credit facilities, which may or may not be legal and recognized.

"Customers turn to create bespoke credit arrangements - with each partner, in each destination market. Each arrangement requires additional overhead and management, making it a slow, burdensome, and ultimately inefficient process," explained Ripple in the regard.

Ripple's Line of Credit solves this problem for its customers by providing upfront access to capital for every market through one simple credit arrangement - simplifying access to financial solutions that accelerate business performance and scale.

As per the blog, customers using ODL on RippleNet can purchase XRP from Ripple on credit-customers are charged one fee on the amount borrowed, with no hidden fees, and can receive approvals faster than through traditional means.

"RippleNet customers simply take advantage of one simple XRP-based arrangement everywhere that ODL is available, regardless of sending destination or fiat currency and costs a lot less than most other available credit options."

For now the service is currently only available to eligible institutional RippleNet customers, and not by consumers, retail customers, or the general public.

Ripple said its Line of Credit has already been piloted by RippleNet customers who specialize in cross-border money transfer.

The Line of Credit operates wholly on Ripple's own blockchain and XRP tokens.

"It's an exclusive new service that financial institutions and money service providers can use to consistently provide customers with cost-effective, real-time cross-border payments," the firm concluded.