MoneyGram to Pilot Ripple's XRP Token for International Payments

Gladys Abbott
January 12, 2018

For MoneyGram, Fortune said, the partnership with Ripple "may provide a way to maintain its share of the money transfer market" amid competition from a new generation of low-priced Internet-based services like TransferWise.

Blockchain firm Ripple will be partnering with US money transfer service, MoneyGram, to test out payment flows of XRP, Ripple's native cryptocurrency, the companies announced today.

While existing money transfer companies need to have pre-funded accounts in different nations to ensure they are able to facilitate transactions, using XRP means the company can directly transfer funds from one country to another instead, Ripple chief executive Brad Garlinghouse said.

Ripple is focused on fixing the inefficiencies and problems that exist in cross-border payments, regardless of whether those payments originate with a bank, corporate or another financial institution.

As part of the arrangement, MoneyGram will test the use of Ripple's cryptocurrency, XRP, to move funds in a faster and cheaper way, Reuters reports. "Money transfer companies are incredibly important because they help people get money to their friends and loved ones", said Brad Garlinghouse, CEO of Ripple.

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Ripple provides one frictionless experience to send money globally using the power of blockchain. "We're hopeful it will increase efficiency and improve services to MoneyGram's customers", said CEO Alex Holmes in a statement. By joining Ripple's growing, global network, financial institutions can process their customers' payments anywhere in the world instantly, reliably and cost-effectively.

"Every day blockchain technology is changing the norm and encouraging innovation".

"This notion of using digital currency as a form of bridge funding is not unique to XRP", Fortune said, noting that a year ago, IBM and a consortium of banks in the South Pacific announced a blockchain transfer arrangement that uses a cryptocurrency called Stellar.

XRP allows banks and payment companies to send money quickly, no matter the location. Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them.

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