Ripple is really good at B2B partnerships and of all the cryptocurrencies it’s been integrated with banks and financial institutions the most successfully. This gives the speculation about a partnership between Ripple (XRP) and Amazon.com (AMZN) an aura of plausibility.
However, let’s be clear this is a hypothetical partnership that is yet to happen, and Amazon is not likely to partner with a cryptocurrency directly, it’s already offering blockchain on the cloud via AWS.
Last December, the chief cryptographer for Ripple, David Schwartz, let it slip that there were two huge Ripple partnerships coming up that he wasn’t able to name. Ripple is full of big partnerships though, so it’s a bit of a leap to think Amazon is among them. However in recent months, Facebook has created a blockchain division meaning Google and Amazon are under pressure to adopt native cryptocurrency or blockchain solutions to keep at the forefront of innovation.
If indeed Ripple is partnering with Amazon, it’s been kept secret pretty well. Ripple payment settlement services and XRP (the coin) would be able to streamline operations and cross-border payments.
Ripple has around 4800 times the supply of Bitcoin, this is not a scarce decentralized asset.
While Ripple is a distributed, open-source payments system that’s still in beta; it’s highly compatible with the existing financial system and therefore it’s easy to see the commercial digital web adopting it. Amazon has of late partnered with J.P. Morgan Chase and shows both ties to the Pentagon, the police and is nearly a fetish company of Wall Street investors.
Ripple on the other hand is led by a private company. According to is OpenCoin, the company behind ripple, the currency addresses the need to keep money flowing freely. Amazon as an E-commerce, Cloud, Entertainment, Grocery-logistics, and AI company — certainly knows something about keeping money flowing with well over 100 million Amazon Prime customers. It’s also the leading smart speaker in terms of penetration into our homes.
The argument goes: Amazon deals with a lot of suppliers from around the globe. These suppliers need to be paid in a fast and efficient way. Amazon is a complex B2B and B2C entity and one of the leading marketplaces of the future. As a global entity Amazon may adopt blockchain for more efficient low-cost and fast payments; Ripple would definately be someone they could look into adopting or even acquiring.
Ripple’s mission statement is about unifying a fragmented payment situation:
Payment systems today are where email was in the early ’80s. Every provider built their own system for their customers and if people used different systems they couldn’t easily interact with each other. Ripple is designed to connect different payment systems together.
In theory this is a vision that’s compatible with what Amazon is doing with E-commerce around the world, with now a significant presence in India. Even as Walmart has practically acquired Flipkart, Amazon will likely be the dominant marketplace for hundreds of millions of people in India and basically become the primary shopping utility for the english speaking internet.
The company building the Ripple protocol, OpenCoin, was co-founded by CEO Chris Larsen and CTO Jed McCaleb. Ripple has had success integrating with groups of Japanese banks in particular. If successful, that amounts to practically a national roll-out in Japan, where Bitcoin adoption with retail and services is commonplace.
Ripple bills itself as:
Better Than Any Blockchain
Ripple connects banks, payment providers, digital asset exchanges and corporates via RippleNet to provide one frictionless experience to send money globally. Would Amazon want access to such a system? How would it integrate?
The rumor gathered speed in November 2017, when Ripple hosted a conference presentation and displayed a slide that appeared to show Amazon, Uber, and Seagate as prime examples of companies that could use Ripple’s xVia platform. Certainly in Ripple’s end-game, it’s integrated with the likes of Uber and Amazon; however now with Facebook likely going after a FacebookCoin of some kind, Ripple will have to move fast to make the necessary enterprise integration; and not just be relegated for banks and the purely financial world.
Ripple QR Code Mobile Payments?
In theory, trading between Amazon and suppliers would be as easy as scanning a Q.R code and transferring Ripple (XRP) coins.
We know with the likes of AmazonGo stores, consumers sign-in with QR codes. It’s likely FacebookCoin and Amazon’s brick-and-mortar tech will increasingly go the route of QR codes, which have become the dominant mobile payment gateway on the New China internet.
Amazon could pilot XRP in any number of ways. XRP blockchain solutions have also been suggested as being ideal for Amazon’s fleet management system on top of the revolutionary payment solutions.
If we think seriously about Amazon on the blockchain, if Amazon wanted to have a crypto as the payment currency for their giant online presence, what options would they gravitate towards? They would probably build their own. However if they wanted to try an existing one, XRP would make sense.
Ripple thinks its faster and more reliable than anyone else. XRP settles over 500x faster than bitcoin and any other digital asset, which allows for near instant inter-exchange transfers.
Ripple positions itself as a complement to, rather than a competitor with, Bitcoin. The Ripple network is designed to allow the seamless transfer of any form of currency, which Amazon might be looking into. For transactions, Amazon could definately use Ripple. You can see a list of Ripple partnerships here.