Ripple XRP and Payments Giant MoneyGram Partner For Cross-Border Remittances
Jan 13 2018
The Ripple price (XRP/USD) has seen a sharp increase following news that the world's second-largest money transfer company MoneyGram will start using the XRP token global payments. As part of the agreement, MoneyGram will pilot XRP in their payment flows and also explore integration into Ripple's ecosystem through xVia. They cited the low cost and speed of XRP transactions.
International Payments is a multi-billion dollar industry and the current way of using a centralized authority who hold enough foreign reserves to be able to facilitate the cross-border transfers is very inefficient considering the time and cost involved.
"This notion of using digital currency as a form of bridge funding is not unique to XRP", Fortune said, noting that a year ago, IBM and a consortium of banks in the South Pacific announced a blockchain transfer arrangement that uses a cryptocurrency called Stellar. Its transaction fee, at just "fractions of a penny", is also comparable to bitcoin's $30 (roughly Rs. 1,900) per transaction fee. The money transfer company will access and use the token through xRapid, Ripple's on-demand liquidity product.
Alex Holmes, Chief Executive Officer of MoneyGram, said, "Every day blockchain technology is changing the norm and encouraging innovation".
Ripple's partnership with MoneyGram comes at a time when rumors of a cryptocurrency ban in South Korea have left the crypto market rattled.
Ripple was more appealing than Bitcoin to Moneygram because of Bitcoin's fees. MoneyGram is said to be the second largest money transfer company in the world.
"We are excited about this pilot and a long-term strategic partnership with MoneyGram".
But thanks to a positive announcement from Ripple, the blockchain company behind XRP, the cryptocurrency has bounced 26% off its low to US$2.04 per coin according to Coin Market Cap.
Ripple is up 10% today as of 10:45am ET, trading at $2.16 according to data from CoinMarketCap.