MoneyGram and Ripple Announced a Partnership

MoneyGram and Ripple Announced a Partnership

American corporation MoneyGram, one of the largest providers of international money transfers, has sighned a partnership agreement with Ripple.

What For?

According to the official press release, MoneyGram will test the possibilities of Ripple xRapid service for speeding up and reducing the cost of global money transfers. The release emphasizes that the Ripple commission is much lower than commissions in the bitcoin network.

Representatives of Ripple note that now companies that provide money transfer services need to have accounts in different countries and keep a certain reserve of funds for them in order to guarantee the delivery of the transfer to the recipient. According to Ripple CEO Brad Garlinghouse, XRP can help the company to directly transfer funds from one country to another.

The inefficiency of global payments affects not only banks but also institutions such as MoneyGram ... Using XRP tokens, which take up to three seconds to transfer, they will be able to move money as quickly as information.

- Garlinghouse said.

According to a press release, the company will also test other Ripple products, including xVia.

CEO of MoneyGram Alex Holmes confirmed that the company will use xRapid in its pilot program.

We hope that this will increase efficiency and improve the service offered to our customers.

Recall that earlier Ripple had a partnership with Japanese credit card issuers, and banks in Japan and South Korea announced the start of testing of the cross-border payments system based on Ripple's blockchain.

Also a few days ago, representatives of Ripple said that three of the five largest money transfer companies will use the Ripple (XRP) token in their payment systems. This led to a sharp increase in the share price of Western Union.

However, in December in social networks, there were rumors that the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA), which had already launched a project to conduct cross-border payments in XRP, seemed  the protocol "not serious enough."

Information Source: CNBC