Not long ago, one of the leading global money transfer and payment services providers, Moneygram International got into partnership with the Fintech company, Ripple Inc. The aim of this partnership is for Moneygram to leverage on Ripple’s XRP integrated financial tool, xRapid to minimize the high cost associated with funds transfer and settlement.
Moneygram has about 350,000 agent locations in over 200 countries, processing over $30 billion a year. It needs speed to be effective in payment processing and settlement of transfers, using xRapid will not only enable the payment services giant to process transactions faster, but it will also save cost.
According to MoneyGram’s CEO, xRapid integrated with ‘XRP is the best asset for settlement’. He went further to say that Moneygram may have the liquidity but not the speed, Ripple has the technology that provides the speed needed by the United States based company. The speed provided by the Ripple tools will enable Moneygram to minimize liquidity cost.
“From a platform perspective, xRapid and XRP as an asset is absolutely the best one to use for settlement, We have the liquidity and not the speed and Ripple has the speed so it’s a perfect partnership”
xRapid is a decentralized financial tool powered by Ripple’s XRP to enable financial institutions to minimize liquidity cost and at the same time improve customer experience by saving time.
Traditionally, financial institutions may need pre-funded local currency accounts around the globe to operate in emerging markets. This requirement increases the liquidity cost, but xRapid lowers the capital requirements for liquidity.
The idea of the xRapid is to free up all the money kept in different locations. This can be achieved with the digital asset, XRP to provide on-demand liquidity, lowers costs and enables real-time payment in an emerging market. XRP offers banks and payment providers adequate liquidity to service cross-border payments.
Recently, another notable partnership in the payment industry happened between Visa and Western Union. This could be very daunting for Ripple but coming together with Moneygram was much positive move.
Ripple has been at the forefront of promoting crypto adoption to enterprise and institutions. The Connection with Moneygram will not only promote the cryptocurrency adoption, but it will also increase XRP’s utility.