Use cases

The flexibility of Ripple Payments with On-Demand Liquidity (ODL) enables us to meet our customer needs across multiple use cases.

ODL can be used by:

  • Payment service providers to facilitate cross-border remittances amongst family and friends
  • Fintechs processing business-to-business (B2B) transactions overseas for small-to-medium sized enterprises
  • Companies transferring internal treasury payments to accounts in foreign countries

Sender use cases by transaction type

Transaction type Description How it works
Individual payments Consists of individual customer or business payments. Each payment is settled using ODL. This use case applies to remittances and B2B payments. Ripple funds the sender wallet with XRP, which is drawn down for individual payments and sent to the receiver. The receiver then makes payouts to end beneficiaries in receive markets.
Bulk funding Instantly top up the sender's position with a receiver. For example, a remittance company pre-funding their position with an aggregator for offshore payouts. This use case applies to remittances and B2B payments. Ripple funds the sender wallet with XRP, which is drawn down and sent to the receiver. The receiver then converts to fiat and funds the sender’s account at the receiver. Individual fiat payouts are later made through the receiver payout network to end beneficiaries in receive markets.

Note: Ripple prefers that senders use RippleNet to process final beneficiary payouts.
Internal treasury Intra-company transactions for customers with accounts in a foreign country. Ripple funds the customer's wallet with XRP, which is liquidated to fiat that can be separately withdrawn to the customer's bank account.

Individual payments

The following diagram represents the use case for individual payments, which covers remittances and B2B payments settled using ODL:

Individual payments use case

  1. Ripple deposits XRP into the sender’s designated wallet.
  2. The sender retrieves and accepts a quote using the RippleNet API operations.
  3. RippleNet transfers XRP from the sender's wallet to the receiver's wallet.
  4. The receiver pays out fiat currency to the beneficiary.
  5. The receiver liquidates XRP for fiat currency.
  6. Ripple invoices the sender for initiated payments in aggregate.

Bulk funding

The following diagram represents the use case for ODL bulk payments, covering both remittances and B2B payments:

Bulk payments use case

  1. Ripple deposits XRP into the sender’s designated wallet.
  2. The sender retrieves and accepts a quote using the RippleNet API operations.
  3. RippleNet transfers XRP from the sender's wallet to the receiver's wallet.
  4. The receiver adds fiat funds to the sender’s account that will later be disbursed to beneficiaries.
  5. The receiver liquidates XRP for fiat currency.
  6. Ripple invoices the sender for initiated payments in aggregate.
  7. The sender sends payment instructions to the receiver via RippleNet.
  8. The receiver disburses funds to beneficiaries from the sender's funded account.

Internal treasury

The following diagram represents the use case for internal treasury transfers for customers with bank accounts in foreign countries:

Individual payments use case

  1. Ripple deposits XRP into the customer's designated wallet.
  2. The customer retrieves and accepts a quote using the RippleNet API operations.
  3. The customer, using RippleNet and ODL technology, liquidates XRP to the destination fiat currency.
  4. The customer transfers destination fiat currency from the wallet to a local bank account.
  5. Ripple invoices the customer for initiated payments in aggregate.