MoneyGram Joins Hand With Ripple In Order To Modernize Its Payments System
One more good new comes along the way of Ripple technology as the blockchain-based startup has teamed up with one of the world’s largest money transfer companies - MoneyGram. MoneyGram is looking forward to adopting the blockchain technology which enables quick and instant payments transfer, and to achieve this it will pilot the XRP token within its payment flows.
Both of these companies will be working together to integrate MoneyGram’s payments system with the Ripple ecosystem, for which they will be using the new Ripple service called xRapid which is designed to provide on-demand liquidity to financial institutions.
Ripple claims that its payments solutions in much faster and cheaper in comparison to its major rivals like Bitcoin and Ethereum. While appreciating the speed and efficiency of XRP, the companies said: “XRP remains the most efficient digital asset for payments with transaction fees at just fractions of a penny, compared to Bitcoin fees of about $30 per transaction. Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour.”
MoneyGram, being a money transfer company, allows its customers to efficiently and safely transfer cross-border payments to friends and family anywhere across the globe. Under the existing payments, structure, users are requested to pre-fund their accounts in order to source liquidity. The existing decentralized blockchain technology has the ability to optimize capital deployment and make the current process even better.
Ripple CEO, Brad Garlinghouse called the partnership with MoneyGram as a strategic one which would demonstrate Ripple’s ability ability to handle low cost payments. He said "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. 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.”
While commenting on the partnership, Alex Holmes, Chief Executive Officer of MoneyGram, said, "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.”
Following this news, the cryptocurrency which has been on a major correction since the start of this week is back again on an upward trajectory and is currently trading at $1.97, at the press time.