Visa, the American multinational financial services corporation has acquired Earthport, the British payment firm for $250.6 million. Earthport offers cross-border payment services to businesses and banks.
In December 2014, the London-based firm partnered with the blockchain based payment network Ripple. After partnering, in 2016, they launched Earthport Distributed Ledger Hub which was the first Ledger Hub in the world. With the ledger hub, the clients of Earthport could use the distributed ledger technology of the company through a simple and inexpensive single API. The API offers access to the Ripple ecosystem and to a wide variety of payment methods which Earthport offers in over 200 countries.
In the same year, Earthport executed the first cross-border payment transaction received via distributed ledger for Santander Bank. With the transaction, Santander Bank became the first bank in the United Kingdom to use distributed ledger technology (DLT) for cross-border payments globally.
According to Earthport, Ripple has helped the company to provide access to more countries, currencies, payment types, and accounts through a single API. With the deal, Visa is looking forward to expanding its cross-border payment business, which is currently around 10% of the overall revenue. To acquire Earthport, Visa has paid four times of the closing stock price of Earthport on 26th December.
Earthport uses a single Application Program Interface (API) to streamline cross-border payments. With the single API, the company clear and settle funds locally with its banking partners. Bank of America, Japan Post Bank, Payoneer, Transferwise, Hyperwallet, and Ripple are the clients of Earthport.
Last month, the Chief Executive Officer of Ripple, Brad Garlinghouse said that at least 100 Society for Worldwide Interbank Financial Telecommunication (SWIFT) connected banks signed on with Ripple. He further added:
“This undercuts SWIFT’s contention that blockchain and cryptocurrencies won’t play a role in the banking sector.”
According to Brad, people are becoming more interested in blockchain technology. Recently, to boost the adoption of blockchain technology Brad has donated $50million to 17 universities around the world.