Ripple: MoneyGram to Test Its Digital Coin for Payments

Randall Padilla
January 13, 2018

The companies also will evaluate whether MoneyGram will become one of Ripple's payment partners. Like its longtime rival Western Union, MoneyGram has faced competition from a new generation of low-priced Internet-based services like TransferWise.

The flow of good news for Ripple (XRP) doesn't seem to stop and this time the blockchain payment's startup has collaborated with the Dallas-based giant for money transfer - MoneyGram.

The move is significant because the arrangement involves the use of XRP, Ripple's digital currency, which has recently soared in value but also faced questions about its practical uses. Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour.

Ripple was more appealing than Bitcoin to Moneygram because of Bitcoin's fees. The money transfer company will access and use the token through xRapid, Ripple's on-demand liquidity product.

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

Ripple's venture with MoneyGram comes several months after the company announced a partnership with American Express axp .

Ripple, a fintech startup focused on providing blockchain solution for payments, has the backing of numerous worldwide banks and financial institutions, including Standard Chartered and the Royal Bank of Canada.

MoneyGram is a global provider of innovative money transfer and payment services and is recognized worldwide as a financial connection to friends and family.

MoneyGram, the world's second-largest money transfer company, stated that it was "hopeful" the partnership would "increase efficiency and improve services to MoneyGram's customers".

The value of XRP surged nearly 15% to $2.22 on the announcement, according to Coinmarketcap data.

But thanks to a positive announcement from Ripple, the blockchain company behind XRP, the cryptocurrency has bounced 26% off its low to US$2.04 per coin according to Coin Market Cap.

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