Ripple XRP and Payments Giant MoneyGram Partner For Cross-Border Remittancesbr>
Ripple, whose XRP token is the third-largest cryptocurrency in market cap, has partnered with payments giant MoneyGram for a new cross-border payments solution using XRP.
Global payments is a growing market, particularly with mobile solutions increasingly coming on board. It is estimated that remitters sent nearly $600 billion in cross-border payments in 2016. While huge, the market is kept laggin by the need to use pre-funded accounts, usually accessed by visiting retail stores. That makes the process for payments costly and slow.
In the MoneyGram deal, customers will have the ability to send funds in real-time. MoneyGram will access and use XRP in their payment flows through xRapid, Ripple’s on-demand liquidity product. xRapid enables real-time foreign exchange (FX) settlement through XRP, which gives financial institutions the ability to unlock liquidity and access multiple corridors with one pre-funded originating account.
“Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid,” said Alex Holmes, chief executive officer of MoneyGram, in a press release. “We’re hopeful it will increase efficiency and improve services to MoneyGram’s customers.”
“The payments problem doesn’t just affect banks, it also affects companies like MoneyGram, which help people get money to the ones they care about,” said Brad Garlinghouse, CEO of Ripple. “By using a digital asset like XRP that settles in three seconds or less, our clients can move money as quickly as information.”