In its bid to facilitate payments within a 24/7 hour deadline, MoneyGram has gone into a partnership with Ripple to leverage the latter’s xRapid product to provide on-demand liquidity to its customers.
Through a two year strategic partnership, MoneyGram will be working with Ripple with the latter becoming its key partner for foreign exchange settlements and cross border payment. The payments will be made using digital assets. Besides just getting a partner, MoneyGram is also getting capital amounting to $50 million in exchange for equity during the two-year strategic partnership.
Details of the Partnership
MoneyGram seeks to take advantage of this injection of funds from Ripple to improve the confidence of the previous financing. Through XRP, MoneyGram will be able to settle payments in destination currency once a transaction is initiated. Apart from just facilitating the transfer of cash from point A to B, MoneyGram will be benefiting a lot from using XRP Ledger. First, transactions time will be reduced significantly since XRP Ledger processes its transactions within two to three seconds. With such speeds coupled Ripple settling the transfer in digital assets, transactions at MoneyGram will be much faster.
Furthermore, XRP lowest fees for transactions will be a gamer changer in the world of remittance since fees charged are in pennies. In addition to all the above, MoneyGram stands to gain a lot from this partnership since its facilities services to a lot of people and the high transaction speeds will come in handy. Moreover, using XRP distributed ledger means less risks, improved efficiency in balance sheet management, and reduces overall costs for MoneyGram. Through Ripple, MoneyGram will be serving its clients much better and expand into the uncovered regions across the globe. With all teams ready to revolutionize the remittance sector, once the success of the partnership ends in two years, it is more than likely the two firms with sign a long term partnership.