As part of the agreement, MoneyGram will pilot XRP in their payment flows and also explore integration into Ripple's ecosystem through xVia. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is an efficient digital asset for blockchain powered payments with transaction fees at just fractions of a penny.
To put things into perspective, MoneyGram transfered over $600 Billion in cross-border payments in 2016. Consumers don't have any reason to be loyal to one payment transfer company and so, if a competitor uses advanced technology promising a 4-second transfer, customers would flock and the payment companies will lose the business.
Ripple chief executive Brad Garlinghouse also mentioned that the partnership will help demonstrate XRP's usefulness in lowering costs for money transfers between friends and families.
"We are excited about this pilot and a long-term strategic partnership with MoneyGram".
XRP Daily Chart
"Our clients can move money as quickly as information", said Ripple CEO Brad Garlinghouse. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid.
About Ripple Ripple provides one frictionless experience to send money globally using the power of blockchain. The two agreed upon expanding their digital payment methods globally, but the US had blocked it, sending Moneygram shares down over 9 percent.
Besides the whithrawal of the Korean markets out of the average price based on the markets pool of CoinMarketCap, that affected pretty much every single platform listed on their markets, including Ripple, we had a disturbing wave of news regarding Ripple and its solidarity.
Enter Ripple. The San Francisco startup is offering on-demand liquidity and rapid foreign exchange through XRP, theoretically allowing financial institutions to send payments around the world without the need for multiple corresponding accounts. That makes the process for payments costly and slow.More news: Lost in space? Secret SpaceX Zuma satellite a total loss