Ripple have partnered with MoneyGram, one of the world’s largest money transfer companies, to trial the use its solutions in its payments infrastructure.
MoneyGram will be piloting integrating XRP into its payment flows. XRP is a digital asset for payments with transaction fees. Ripple claims that the solution allows for transaction fees at just fractions of a penny, compared to current Bitcoin fees that are around $30 per transaction.
The average transaction time for XRP is 2-3 seconds, which is a good deal faster then other digital asset, some of which can range from 15 minutes to an hour.
“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,” said Brad Garlinghouse, CEO of Ripple.
“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.”
Changing the norm
The current payment model requires money transfer companies to use pre-funded accounts to source liquidity. Blockchain technologies can be utilised this process and optimise capital deployment.
MoneyGram is hoping that the partnership will allow them to improve the efficiency of their global operations but also lead to a better customer experience.
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.”