MoneyGram Collaborated with Ripple for ‘Payment Flow’ Project
January 15, 2018 12:06 pm
MoneyGram to use Ripple which is also known as XRP for its “Payment Flows.” Companies like MoneyGram use pre-funded accounts to handle the payments, but this process is often slow and can tie up funds for longer than is ideal. MoneyGram’s Alex Holmes told Bloomberg that he hopes that using the Ripple’s blockchain technology could increase the speed of processing the transferable funds.
“Ripple is at the forefront of blockchain technology, So, we hope it will increase efficiency and improve services to MoneyGram’s customers.”
It is still remained to see when MoneyGram will adopt XRP, but Ripple has had some success in this area before. It currently offers quick and affordable money transfers to users on different continents. Ripple’s fees are lower than traditional services and digital rivals such as bitcoin because it employs several middlemen to expedite and simplify the process.
The entire details of this have not yet been revealed, but MoneyGram’s collaboration with Ripple highlights the changing nature of money payment services such as the Western Union and MoneyGram. As of now, so-called legacy providers remain a dominant force in this industry, but digital competitors such as Ripple are starting to catch up. One only needs to look at the fate of Blockbuster Video to see the dangers of ignoring the shifts in a changing the market.
In addition to being faster than traditional services, XRP could also interrupt this industry by being more affordable. Digital-first companies have the competitive benefit of not having to pay as high costs as their brick-and-mortar rivals. They’re able to pass those savings on to consumers making them an attractive option for the money-alert.
The longterm success of this plan remains to be seen, but the short-term has turned out well for both companies. MoneyGram saw its stock rise by 10 percent. Ripple has also seen an increase of four percent during the same time period.