But banks have flocked to it because it solves three problems of cross-border transactions: speed, transparency, and cost...You see, banks can send money to any other bank on the Ripple network within five to 10 seconds.And when you send money via Ripple, you know the exact cost and exchange rate. With the power of the blockchain, you can immediately see trans- actions being processed – making it transparent.
Plus, Ripple is cheap to use. According to a report published by Ripple in 2017, it claimed to be at least 42% cheaper than traditional Society for Worldwide Interbank Financial Telecommunica- tion (SWIFT) payments systems.
And unlike other blockchains, Ripple can process over 20,000 transactions each and every second. This matches the transaction of Visa. (In comparison, bitcoin can only handle seven trans- actions per second, and Ethereum can handle just 15 per second.)
When you consider that Visa’s market cap is $412 billion, Mastercard’s is $300 billion, and PayPal’s is $200 billion... Ripple is one of the cheapest global payments companies in the world with a market cap of just $8.5 billion