Financial technology firm and Ripple partner, Volante Technologies, is poised to join an instant payments service pilot organized by the Federal Reserve.
The service aims to “provide American consumers and businesses with instant payments services that deliver control, convenience and certainty.”
Federal Reserve Looks to Instant Payments
The pilot will include over 110 organizations from the Federal Reserve’s FedNow Community to support the development, testing, and adoption of the service.
Esther George, the president and CEO of the Kansas City Federal Reserve, says the central banks appreciate the enthusiastic response to the program. She continued, saying that this is a principal reason the pilot was expanded to include more organizations like Volante;
“We’re gratified by the industry’s tremendous interest and willingness to devote time and energy to help us develop the FedNow Service”
Volante partnered with Ripple in 2015 to provide XRP settlement for its customers.
A Race for Speed and Crypto
The Federal Reserve’s FedNow’s pilot scheme is part of an industry-wide effort to provide users with instant payments.
Last year, payment giants Visa and PayPal both announced an extension to a partnership that expanded instant payments for consumers and businesses.
Notably, last year, PayPal also announced a move into the cryptocurrency industry, allowing its users to buy and sell a limited selection of cryptocurrencies.
The move saw $242 million in cryptocurrencies traded on the platform in less than 24 hours.
More recently, Visa signaled support for the industry when CEO, Al Kelly, suggested in an earning’s call that the company was best-placed to support cryptocurrency payments.
Will Ripple Lead the Way?
Once the only major player in decentralized instant payment settlement, Ripple now faces multiple competitors.
Yesterday, Stellar Lumens, Ripple’s primary rival in the industry, released its 2021 roadmap, outlining its vision for its instant payments technology. It also included proposals to ramp up the company’s marketing campaign, with the aim of increasing its tech’s visibility.
Moreover, the influx of the likes of Visa, PayPal, and now the Federal Reserve shows the forces that Ripple is set to face. This all comes amid its ongoing battle with the SEC over the classification of XRP as a security.