MoneyGram Received $15.1 Million In XRP Incentives From Ripple In Q2 2020

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Ripple Heightens MoneyGram XRP Incentives In Q1 2020 to $16.6 Million
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MoneyGram’s Q2 financial report reveals that over $15 million worth of XRP was paid to the company by Ripple. The report says the payment was an incentive for the use of Ripple’s payment solution, On-Demand Liquidity (ODL). The payment was pigeonholed as “market development fees” in MoneyGram’s financial report.

According to reports, this is an incentive that Ripple has been paying MoneyGram for a while now. In Q1, Ripple paid the sum of $16.6 million in incentives, more than that of Q2. A MoneyGram official says the company does not hold any XRP and sells all the units it receives from Ripple. As of March 2020, MoneyGram had sold $11.3 million worth of XRP it got from Ripple.

MoneyGram and Ripple entered into a business partnership more than a year ago. As part of the agreement, MoneyGram uses Ripple’s ODL solution to facilitate cross-border payment. Ripple also has a 10% stake in MoneyGram which was sealed with a $50 million investment in June 2019. MoneyGram has since been exploring ways to expand its use of ODL for payments for its customers.

Out of the $15 million, the company claims it used $6.3 million in transaction expenses and had only $8.8 million as net income. Ripple’s investment in MoneyGram has helped significantly in promoting MoneyGram’s business. According to the financial report, the payment giant, experienced a 106% increase in digital transactions, now accounting for 27% of its total transactions.

“The investments that we have made over the past few years have allowed us to build a fast growth digital business which not only has higher customer retention and productivity rates, but also surpassed the walk-in business during the quarter delivering higher margins on average. With digital now representing 27% of money transfer transactions, the business is providing a significant contribution to our bottom-line results,” MoneyGram’s CEO Alex Holmes said in a statement.

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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.