Visa Will Purchase Ripple’s Partner Earhport

Visa Inc buys Earthport Plc, a British firm that facilitates international transactions for banks and businesses.

American Payment giant Visa wants to speed up transactions

Reuters reports that Visa Inc pays 198 million pounds to buy Earthport Plc (EPO.L). Earthport is a British firm, founded in 1997, that facilitates international transactions for banks and businesses. The payment giant offered 30 pence for each Earthport share which made the stock price shot up from 7,5 pence to 30 pence during the 27th of December. An increase of around 300 per cent, matching the offer price.

The London-headquartered firm said Visa’s proposal was “fair and reasonable” and that it would recommend its shareholders take up the all-cash offer.

Earthport says that they offer a lower-cost alternative to traditional payments systems by allowing banks and money transfer firms to have a single relationship instead of multiple ties with various payments channels around the world. Earthport counts Bank of America Merrill Lynch and Japan Post Bank among its clients. The company said Visa’s offer was a revised proposal that followed an indicative offer from the U.S. company last month.

Earthport, Visa, Ripple and Blockchain technology

Visa has shown interest in the blockchain, arguing that they want to be in the middle of all payments. The company even have plans of launching a blockchain-powered digital identity system that will facilitate cross-border payments. Visa states that the distributed ledger-based system is ”one-of-a-kind,” and intends to aid financial institutions in processing cross-national global business-to-business payments.

They have now bought Earthport. Interestingly, Earthport is a partner of the blockchain company Ripple. The partnership aims to integrate the Ripple protocol into the firm’s existing payment network to improve international transactions.

“Ripple is a new technology and, once integrated into our payments service could bring benefits in efficiency and speed to global transfers. Earthport will apply its existing compliance framework, rule sets and secure payments network to any Earthport clients transacting using the Ripple protocol,” said Hank Uberoi, CEO of Earthport.

Earlier this year, Ripple’s CEO Brad Garlinghouse even said that Ripple aims to take over SWIFT banking network. With Earthports help, that might become a reality.

Speeding up transactions are important for all payment processor companies, Visa and Ripple included. They all aim to use the latest technology to become the most used and popular. Visa is gearing up to implement blockchain and face the future of payments.

Image Source: “Flickr”

Leave a Reply

Your email address will not be published. Required fields are marked *