Due to the increasing mobility of workers and other relevant factors, the public need for a fast, secure and inexpensive payment infrastructure is growing. Because of its older population, Japan is among the top countries recruiting employees from around the world.
According to the data, Japan is currently hosting 1.72 million foreign workers. The number has increased dramatically over the past five years, Japan had 0.9 million workers in 2015 and the number has almost doubled since then.
As a result of the above scenario, the country’s need for an efficient cross-border payment network is pretty obvious.
SBI Group, international transfers and Ripple:
Seizing the Opportunity The Japanese SBI Group is making sufficient use of the market. A partnership with one of the world’s leading providers of cross-border payment networks, RippleNet, has existed since 2016.
Ripple Labs’ subsidiary RippleNet supports SBI Remit[SBI’s subsidiary] built a cheap and smooth transfer network in the country.
SBI works with Hamamatsu Iwata Bank:
Most recently in setting up a nationwide transfer network[based on RippleNet’s ODL], SBI has partnered with Hamamatsu Iwata Bank; one of the leading baking institutions in Japan.
The partnership aims to provide Hamamatsu Iwata Bank with adequate technical support to enable the institution to develop its own remittance network. SBI stated in the press release:
“Our mission is to provide financial services that focus on remittances to overseas residents and we use Ripple’s distributed ledger technology, which features fast deposit and low fees.”
Waves in japan:
In the past few years, Ripple has become a major shareholder in the Japanese remittance market. At one point, Ripple CEO Brad Garlinghouse stated that because of Ripple’s partnership with SBI, Japan is “one of their fastest growing markets” and given the insufficient environment for the company in the US, Japan is their closest base.