What is Santander’s blockchain money transfer service, when does One Pay FX launch and what is Ripple?

ONE PAY FX is giving Santander customers an opportunity to use the speed and transparency associated with blockchain technologies

But what is Blockchain and how does One Pay FX work?

What is Santander One Pay FX?

One Pay FX is a new service from Santander that makes it possible for customers to send and receive international payments on the same or next day.

The new piece of financial tech is available now in the UK, Spain, Brazil and Poland.

As of today Santander customers can download One Pay FX for free from the Apple app store.

Using blockchain-based technology, Santander’s new service is faster than regular payments and allows you to see the exact amount that will be received in the destination currency before you make the transfer.

What is blockchain technology?

Blockchain is a new way of making payments that is the technological backbone of cryptocurrencies like Bitcoin and Ripple.

The system allows users to send payments to one another without having to go through a third party like a bank.

If someone wants to transfer money the blockchain system records it as part of an unalterable database.

As there is no bank or third party monitoring the transfer, the payment is checked and verified by other people also sending transactions.

Users who are also using blockchain technologies cannot alter the amount of your payment they can only check to see if it is legitimate.

Once your transaction has been verified it is added to a queue of other transfers and then sent on to who ever you want to pay.

Despite sounding incredibly complicated it is actually a lot quicker than going through a bank and a lot more transparent as all payments are publicly recorded, available to view and completely unalterable.

Santander use a blockchain technology called ripple.

What is Ripple?

Santander have been developing their One Pay FX with Ripple for 18 months.

Ripple works in a similar way to a blockchain technology in that there is no need for transactions to involve a bank and all transfer are recorded on an unchangeable database.

The financial system is very similar to a medieval banking technique called Hawala that involves transferring money without moving it.

In very simple terms it works like this:

• Adam wants to send Beth £10.
• Adam and Beth live in different countries.
• Chris lives in the same country as Adam.
• Daisy lives in the same country as Beth.
• Adam gives Chris £10.
• Chris contacts Daisy and agrees to owe her £10.
• Daisy then gives Beth £10 and the transaction is complete.

This is a very reduced down version of how Ripple works.

In reality Chris and Daisy are replaced by Ripple.

Adam sends money to Ripple and instructs it to send the money to Beth.

Beth then logs on to her Ripple account and receives money from Adam.

What are the benefits of One Pay FX?

The main advantage of One Pay FX is the speed at which money transfers can take place.

Most transactions abroad will be received on the same day.

You can send £10 to £10,000 at 24 hours a day.

Payments can be made from GBP to EUR and USD, currently, payments made in EUR can be sent to 21 countries and US Dollar payments to the USA.

Ana Botín, Executive Chairman of Banco Santander, said: “One Pay FX uses blockchain-based technology to provide a fast, simple and secure way to transfer money internationally – offering value, transparency, and the trust and service customers expect from a bank like Santander.

“From today, customers in the UK can use One Pay to transfer money across Europe and to the US.”

“In Spain, customers can transfer to the UK and US, while customers in Brazil and Poland can transfer to the UK. Transfers to Europe can be made on the same day and we are aiming to deliver instant transfers across several markets by the summer.”

“Our goal is to help the thousands of people who use international payments services every day, and we will be adding more currencies and destinations in the coming months.”

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