Japanese Banks Launch MoneyTap Blockchain Payment System
With the MoneyTap platform, Yamaguchi, Momiji, and Kitakyushu, three Japanese banks managed by SBI Remit, offer international transaction services using blockchain technology.
With its foundation built on the distributed ledger of Ripple (XRP), the payment system offers swift and cost-effective decentralized cross-border fund transfers.
To access the MoneyTap application, bank clients must verify their identity through the KYC procedure. For added security, biometric authentication is also recommended. Aside from sending money to a bank account, the payment system allows transactions via mobile phone number.
MoneyTap, built on blockchain technology, enables direct real-time transactions between users without intermediaries. This means that transfers are received by the intended recipient in less than a minute instead of the two to three days conventional international payments typically take.
MoneyTap not only speeds up financial transactions between clients in different countries, but also reduces fees. In general, the application promotes more accessible and efficient financial operations for businesses and individuals alike.
MoneyTap debuted in Japan in 2018, developed in partnership with Ripple. By 2019, SBI Holdings, the country's largest financial corporation, had integrated MoneyTap into its processes. The first Japanese banks to adopt MoneyTap were SBI Net Sumishin Bank, Suruga, and Resona. MoneyTap adoption didn't stop there. In 2022, SBI Remit, a subsidiary of SBI Holdings, began integrating the platform, paving the way for even wider usage across the country.
As a reminder, SBI is one of Ripple's main partners, supporting the blockchain firm in its battle against the U.S. regulator, the Securities and Exchange Commission (SEC). In 2021, amidst Ripple's legal troubles in the U.S., SBI's CEO Yoshitaka Kitao stated that Japan would become the most attractive country for hosting Ripple's headquarters, in case of a forced relocation. Additionally, Morningstar Japan, another subsidiary of SBI Group, continues to provide perks for XRP token holders.
MoneyTap, based on Ripple, is increasingly integrated into banking. Not only Japanese financial companies, but also banks from other Asian countries adopt this payment system. And it seems like Europe is also catching on to the trend, with Euro Exim Bank using the platform.
