Ripple (XRP) has announced its long-awaited and loud partnership with MoneyGram, one of the world’s largest money transfer companies.
Thanks to this partnership, which will initially last two years, Ripple will become MoneyGram’s key partner for cross-border currency transfers.
Ripple has also agreed to provide $50 million of capital to MoneyGram for a period of two years.
Ripple & MoneyGram: xRapid comes into play
The partnership with Ripple will focus mainly on the xRapid product, an on-demand liquidity solution that enables almost immediate money transfer.
xRapid allows sending international payments using XRP, the digital asset native to the Ripple Ledger. First, the local currency is exchanged into XRP, then the digital asset is sent across borders and converted into the local currency in seconds. XRP is therefore used as a real-time bridge between the sending and receiving currency.
The low transaction costs of a fraction of a euro cent make XRP the most efficient digital asset for transferring value. In addition, the average transaction time for XRP is two to three seconds, while other cryptocurrencies take more than 15 minutes.
Alex Holmes, President and CEO of MoneyGram, said:
“As the payments industry evolves and matures, it’s imperative that we continue to improve our platform and provide the most effective solution to get funds from point A to point B. Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management.”
Through Ripple’s xRapid product, we will have the ability to instantly move funds from US dollars to target currencies 24/7, which has the potential to revolutionize our operations and drastically streamline our global liquidity management.
MoneyGram operates globally serving millions of customers in more than 200 countries, with support for multiple currencies. Today MoneyGram relies on classic international exchange markets to meet the various regulations.
Through this strategic partnership with Ripple, MoneyGram will be able to carry out the various operations reducing costs, improving efficiency and reducing risks.
“This strategic partnership will enable MoneyGram to greatly improve its operations and enable millions of people around the world to benefit from its improved efficiency. This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies”.
said Brad Garlinghouse, CEO of Ripple.