Money transfer giant MoneyGram has partnered with blockchain startup Ripple in its efforts to understand how blockchain technology and XRP can improve the efficiency of its global treasury operations and consumer experience.
Under the partnership, MoneyGRam will pilot the use of XRP, the native digital asset of the XRP Ledger, in payment flows through xRapid, Ripple's solution for on-demand liquidity.
"Every day blockchain technology is changing the norm and encouraging innovation. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid. We're hopeful it will increase efficiency and improve services to MoneyGram's customers,” Alex Holmes, Chief Executive Officer of MoneyGram, said.
Money transfer companies, such MoneyGram, allow people to safely and efficiently send cross-border payments to friends, families and business partners. The current model for these payments requires money transfer companies to use pre-funded accounts across the globe to source liquidity. Newer blockchain technologies have the potential to revolutionize this process and optimize capital deployment.
"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," said Brad Garlinghouse, CEO of Ripple. "We are excited about this pilot and a long-term strategic partnership with MoneyGram. By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information."
XRP is one of the most efficient digital asset for payments with transaction fees at just fractions of a penny and average transaction time around 2-3 seconds.
