• Moneygram will run a trial of Ripple’s XRP payment technology
• XRP allows cross-border payments to be made quicker and cheaper
• Monegram stock up 12.75%, XRP value up over $2
Moneygram has announced a partnership with Ripple to use their cryptocurrency, XRP, in a pilot-scheme to see if it can improve their business efficiency and costs.
People use the money transfer service to send funds to friends and family in different countries. This requires the company to have worldwide liquidity which is financially risky as well as slow.
Ripple XRP is a Bitcoin-like type of cryptocurrency, digital money, that allows secure transfer of funds to be made in just 3 seconds for a minimal operating fee.
The open ended trial will see Moneygram use Ripple XRP to investigate how it can reduce their costs and settlement times.
Alex Holmes, the Chief Executive Officer for Moneygram said:
We’re hopeful it will increase efficiency and improve services to MoneyGram’s customers.
If the trial proves a success it could see Ripple’s technology being adopted by other remittance companies. It’s currently being used by American Express, Santander and over a dozen other banks for a portion of their cross border payments.
The announcement saw shares in Moneygram rise to 12.75%, and after the mini-crash that affected the whole cryptocurrency market, XRP value rose briefly back over $2.