MoneyGram, one of the world’s largest money transfer and remittance companies, is partnering with Ripple to test new ways to speed up payment flows. It will trial Ripple’s xRapid liquidity platform, which uses the XRP token to convert currencies, and also seek to integrate MoneyGram services in to the company’s xVia payments interface.
It’s one of the new xRapid partnerships that Ripple had promised to announce soon, in its Q3 2017 XRP Market Report.
However although the MoneyGram deal was announced publicly a few days ago, the XRP price continued to slide from its $3.82 USD peak on January 4th, and (at press time) sits around $1.84.
MoneyGram has a well established international infrastructure, with over 30,000 locations in the U.S. for people to send and receive money. Users can also send money online using bank accounts or cards, and use a Facebook Messenger app called “SendBot“.
In its announcement, Ripple said its system removed the need for money transfer companies to have pre-funded accounts to send money across borders.
MoneyGram said it planned to use the trial to further examine how blockchain and distributed ledger technologies could improve its global treasury operations and overall user experience.
Ripple CEO Brad Garlinghouse said:
“The inefficiencies of global payments don’t just affect banks, they also affect institutions like MoneyGram. Money transfer companies are incredibly important because they help people get money to their friends and loved ones … By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information.”
Ripple’s original plan for the XRP token was as a liquidity provider on its internal value exchange network, rather than a cryptocurrency for consumer spending. Recently, however, traders have speculated wildly on the digital asset, leading many outside the cryptocurrency world to consider it an alternative to bitcoin.
xRapid is Ripple’s network for improving liquidity flows between financial institutions and service providers, while xVia is the payments interface companies use to access the global RippleNet network.
Is this good news for Ripple and XRP? Let us know what you think in the comments.
Images via MoneyGram, Fortune