United States – MoneyGram continues to become one of the most reliable US money transfer companies. Last October 30, 2020, the company announced its strategic partnership with the famous Ripple.
According to the report, Ripple will allocate $50 million to MoneyGram in exchange for equity during the two years. MoneyGram will also use Ripple’s xRapid service, a system that promotes instant and inexpensive cross-border payments across the world. MoneyGram will surely reach more customers since this platform is one of the fastest money transfers in today’s market.
Currently, MoneyGram only uses its traditional and old cross-border payment system. It holds foreign currencies in multiple bank accounts, making the money transfer more costly and restricted.
On the other hand, the xRapid service uses Ripple’s cryptocurrency called XRP. When a company initiates a payment or money transfer, the system will convert any initial currency into XRP, say dollars to XRP. Afterwards, the XRP amount will immediately convert into the destination currency, for an instant, XRP to Canadian dollars. Some institutions love this idea since they can save more money and time.
Since 2019, Ripple remains as one of the most reliable enterprise blockchain companies with payment products in commercial use. Ripple is very smart to establish a digital asset that enables users to rapidly and inexpensively source liquidity without compromising its excellent scalability, unlike other digital assets.
According to Ripple’s CTO, XRP continues to make steady progress and establishes difficult-to-match networks. The xRapid system’s design is very secure and uses an anti-robustness principle that prevents the platform from progressing with money transfers unless it is 100% safe. Ripple believes that this system offers a better solution for MoneyGram’s customers, especially those with unintentional forking and double-spending problems.
According to the most recent report, MoneyGram has received 111%growth in transactions and 114% growth in profits since October 2020. Currently, MoneyGram’s earnings stand around $8.9 million, all thanks to Ripple’s market development share. Many reports claim that Ripple paid a so-called “market development fee” to MoneyGram to incentivize the company in using Ripple’s products, especially XRP.
One MoneyGram employee confirmed that the company sells Ripple’s digital asses as fast as possible. The company aims to reduce operating costs and speed up cross-border payments.
With Ripple’s help, MoneyGram can surely process faster than other traditional systems, such as SWIFT and PayPal. Indeed, Alex Holmes, MoneyGram Chairman, and CEO guarantees that Ripple’s xRapid can dramatically streamline MoneyGram’s global liquidity management.