The National Bank of Egypt (NBE) is now Ripple’s newest client. The largest and oldest state-owned bank in the country is partnering with Ripple to establish new channels for inward remittances, according to a February 11 report from local daily news site Youm7.
National Bank of Egypt aims to grow remittance business
This is the first time an Egyptian bank would partner with a blockchain-based payments firm, according to the chairman of the bank, Hisham Okasha. In a statement, the bank said it aims to specifically grow its remittance business amongst Arab Gulf states and with countries around the world.
The vice-chairman of the bank, Dalia El-Baz, cited Ripple’s partnership with over 300 international banks and institutions around the world as a reason for joining the RippleNet network. Chairman Okasha added that the bank conducted “safety tests” before agreeing to join Ripple’s network.
Ripple shows interest in the cross-border payments
The Middle East and North Africa cross-border remittance market grew to $62 billion as of 2018, in which the Arab Republic of Egypt accounted for $29 billion, according to the World Bank last year.
Crypto companies like Ripple hope to disrupt a remittance payment market which remains too costly. The average cost of a $200 payment is around 7%. This is much higher than the target of below 3%, according to the World Bank.
Ripple has shown keen interest in the cross-border payments market and continues to partner with firms in the sector.
As KryptoMoney reported last week, the company announced an expansion into the US-Mexico cross-border payments corridor by partnering with Intermex, a leading remittance service in North America.