Jeonbuk Bank Adopts Ripple Payments: What Does It Mean for Customers?

• Jeonbuk Bank adopts Ripple Payments for faster international transfers.
• Customers may get 24/7 processing, better FX visibility, and tracking.
• Fewer intermediaries could cut costs, but lower fees aren’t guaranteed.

Jeonbuk Bank has partnered with Ripple to use Ripple Payments for international transfers. It is the first regional bank in South Korea to deploy the system for cross-border remittances.

But what does this actually mean for customers sending money overseas?

The main difference is what happens behind the scenes between when a customer sends money and when the recipient receives it.

How Traditional International Transfers Work

When a customer sends money overseas, their bank converts the Korean won into the recipient’s currency. The payment then passes through correspondent banks before reaching the recipient’s bank. These banks act as intermediaries because banks do not have direct relationships with every bank around the world.

Each extra intermediary adds:

• More processing steps
• Additional fees
• Delays
• Less visibility into where the payment is

This is why some international transfers take several days, particularly on weekends and public holidays.

But this does not mean SWIFT itself is holding the money. SWIFT provides the messaging system banks use to communicate payment instructions, while the banks involved handle moving and settling funds.

What Changes With Ripple Payments?

Ripple Payments makes the process faster and more efficient. 

For the customer, the experience may look much the same: they tell Jeonbuk Bank how much money to send, the bank handles the currency conversion, and the recipient receives money in their local currency.

With Ripple in the picture, the critical upgrades happen in the background. 

Traditional route:

Sender → Bank → Correspondent banks → Recipient bank → Recipient

Ripple Payments route:

Sender → Jeonbuk Bank → Ripple Payments network → Recipient bank → Recipient

Ripple’s system provides:

• Faster settlement
• Upfront FX quotes
• Real-time payment tracking
• 24/7 processing, including weekends and holidays
• Less reliance on correspondent banks

Essentially, payments settle in seconds to minutes, not days.

What About Currency Conversion?

Customers must still convert Korean won into the recipient’s currency, as Ripple Payments does not remove the need for foreign exchange. Instead, it makes the process efficient and gives customers more information upfront.

However, faster does not mean cheaper. Customers will still pay an exchange-rate spread or other fees. 

Will Customers Pay Lower Fees?

Possibly.

Fewer intermediaries reduce fees and other costs. It also reduces the amount of money banks need to keep pre-funded in accounts. But this does not automatically mean Jeonbuk Bank customers will pay lower fees. The final cost depends on:

• Jeonbuk Bank’s fees
• The exchange rate
• The destination country
• The receiving bank
• Other payment charges

What Happens on Weekends?

Traditional international banking is affected by weekends, holidays, and banking hours. A transfer on late Friday, for example, may not move through all stages until the next business day.

Meanwhile, Ripple Payments operates 24/7, including weekends and holidays. This means Jeonbuk Bank can process and settle international payments outside normal banking hours.

Yet, 24/7 settlement does not guarantee that the recipient will immediately spend the money, as the recipient’s bank or payment provider still needs to process and credit the payment.

When Can the Recipient Use the Money?

Ripple Payments lets participating financial institutions settle payments. If the receiving bank credits the account immediately, the money becomes available to the recipient. However, if the receiving bank does additional checks or processing, delays can still occur.

So, second-level settlement does not mean every international transfer will always be spendable within seconds.

What Does This Mean for Customers?

For a Jeonbuk Bank customer sending money overseas, the main benefits are:

• Speed: Payments settle in seconds or minutes instead of days.
• 24/7 availability: Payments process on weekends and holidays.
• Better FX visibility: Customers receive an exchange-rate quote upfront.
• Tracking: Customers can get better visibility into payment status.
• Fewer intermediaries: The system reduces reliance on correspondent banks.
• Lower costs: Fewer intermediaries reduce costs, but lower customer fees are not guaranteed.
• Faster access: Recipients may receive funds sooner.

In sum, Jeonbuk Bank’s Ripple Payments rollout mainly changes the infrastructure behind international transfers. Potential benefits include faster settlement, 24/7 processing, better tracking, fewer intermediaries, and more transparent FX.

Related: Ripple Expands NYU Abu Dhabi Partnership, but XRP Impact Remains Limited