Bitcoin rival Ripple to make a splash in business

Early adopters to cash in as businesses look to more efficient payment options

High demand among businesses for more modern payment methods will help Bitcoin rival Ripple to take off, according to IDC, which claims those that get on board with the new tech early can cash in.

Ripple is a financial technology manufacturer based in San Francisco which connects global finance systems in order to transfer funds in real time. Bitcoin is a similar offering but operates in the form of a currency, while Ripple focuses more on the infrastructure side of payments.

IDC said payments made through Ripple will grow "exponentially" in the years ahead as businesses and consumers demand a better experience when transferring funds, and that demand for the new kit is high.

"The innate advantages of speed, reliability, and transparency of protocols such as Ripple will see them win out over conventional payment networks," said the analyst.

"International payments are increasingly out of step with the customer experience that consumers and businesses expect in their modern dealings, and a payment network based on distributed ledgers, such as Ripple, is a 21st-century solution to this problem."

IDC claims the US Federal Reserve is prepared to try out a new payment network based on the principles of Ripple, which is an early seal of approval.

Bitcoin took the tech industry and channel by storm last year, with a number of resellers and vendors – including Dell – accepting the currency in some form.

IDC's senior research analyst Lawrence Freeborn said businesses that take note of Ripple could benefit in the long run.

"Existing players could enhance their offerings and make them more efficient by incorporating Ripple payments, and before the technology is ubiquitous there is also the opportunity to charge customers for it," he said. "It can be expected that once there is any kind of critical mass, saturation will follow rapidly."