The U.S.-based funds transfer powerhouse, MoneyGram recently announced that it will be using Ripple’s XRapid product. The global giant said it has started to use xRapid, a product by Ripple that is aimed at minimizing the cost of liquidity. The product is reportedly powered by Ripple’s XRP digital currency. Now the question that has been in the minds of crypto commentators and proponents is; what is MoneyGram using Ripple’s XRapid for?
XRP (XRP) Price Today – XRP / USD
MoneyGram is Using XRapid to Purchase a Part of Their Currency Needs
Regarding what they will be using Ripple’s XRapid for, MoneyGram said it is using the product to buy a part of their currency needs. In a conversation between a representative from MoneyGram and Cryptonews.com, here’s what the company said:
“We have decided to use XRapid to purchase a part of our currency requirements in major markets. We expect to broaden this into several significant currencies through the two-year span of our commercial agreement with the Ripple network. While we are in the process of developing markets, we cannot disclose which currencies we are buying and our volume of trading activity.”
MoneyGram’s Funds Transfer Revenue for Q2 is 14% less Than That of Last Year
According to the fund’s transfer company, MoneyGram had a transfer revenue of $282.2 million quarter two of this year. This figure is reportedly 14% less than what the company got in the same period last year. Ripple turned down a request for comments on the matter.
Recall that back in June, Ripple announced that it made a $30 million investment in the MoneyGram equity. It was also revealed that Ripple holds the right to invest a fresh $20 million over a two year period. But even before this report came to light (which propelled the price of XRP upwards), MoneyGram has already been ‘ripe’ for Blockchain technology.
Per the report, MoneyGram explains that:
“The commercial agreement with Ripple allows MoneyGram to use Ripple’s xRapid product, and XRP, to complete cross-border transactions. The Company expects this is going to cut down its working capital needs. They believe it has the potential to bring in additional earnings.”
MoneyGram’s Transactions Grew in July Due to the Firms Digital Transformation Projects
In the earnings call with crypto commentators, Alexander Holmes, the CEO of MoneyGram said:
“Removing the U.S. to U.S. markets, MoneyGram went back to positive transaction growth last month. This was driven by MoneyGram’s digital transformation initiatives, the success of its app, and the launch of a web-based portal and point-of-sale system.”
The company’s online transactions saw a whopping 109% year-over-year increase. The revenue grew by nearly 50%. Holmes added:
“Ripple is now a key partner of MoneyGram for cross-border settlements. I am happy to announce that MoneyGram has gone live on Ripple’s xRapid platform. We have started to execute trades earlier in the week and it has played out as a highly beneficial relationship for the parties involved. MoneyGram is now settling currencies in a matter of seconds.”
Ripple To Enhance MoneyGram’s Core Strength
According to Holmes, Ripple will help enhance MoneyGram’s core strength. The goal is to allow MoneyGram to act as a “global liquidity and settlement platform that facilitates millions of transactions across 200 countries along with territories that use more 120 currencies.
Holmes said MoneyGram’s internal innovation lab will keep exploring new use cases for virtual currencies, DLT and Blockchain technology.