MoneyGram, one of the world’s largest money transfer companies, announced in June 2019 that it has formed a strategic partnership with Ripple.
Ripple is a global payment solutions provider that utilises blockchain technology. With this partnership, MoneyGram will be able to use Ripple’s xRapid products and leverage XRP in its cross-border payment processes.
The partnership will support the shared goal of both companies: improving the settlement of cross-border payments. This will be done by reducing payment costs through RippleNet and increasing efficiency. The partnership has been stated to last for an initial term of two years, with Ripple making an initial investment of $30 million.
MoneyGram is a global payment provider for money transfers and services based in Texas. Its goal is to connect family and friends throughout the world in a convenient way by providing reliable financial connections for essential and daily needs. With more than two billion people in the world not having access to a bank account, MoneyGram is aiming to provide the financial inclusion they need.
The global payment provider is built on a foundation of trust, reliability, and innovation. Millions of consumers rely on MoneyGram to get their money from point A to point B in a safe and fast manner. Because of this, the company has invested millions of dollars into world-class compliance, and it claims it will always make security a top priority.
Ripple was released in 2012 and is a real-time gross settlement system (RTGS). It uses a common ledger for transactions maintained by a network of validating nodes. These nodes can belong to anyone from banks to individuals. Ripple provides a faster, more transparent payment service to customers with greater reach and ease. It is used by banks in order to process cross-border payments with end-to-end tracking and certainty. With this, Ripple provides low transaction costs and easy integration.
Ripple’s xRapid product will enable MoneyGram to settle money transfers in a matter of seconds rather than minutes. Currently, MoneyGram relies on traditional exchange markets to meet settlement obligations. However, this requires advance purchases of most currencies, which causes MoneyGram to lose profit. Through this strategic partnership with Ripple, the payment provider will be able to settle large payments and match funding times while at the same time reducing costs, improving earnings, and freeing up cash flow and capital.
Partnerships like this are showing the world how blockchain can be integrated into real-world applications. This is a huge milestone for blockchain and could potentially transform cross-border payments. MoneyGram is a huge company, and the partnership will help to further the reach of Ripple’s network.
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