23 Mar 2020 Marsha Tusk
Moneygram Records Increased Profits After Partnering With Ripple
Moneygram became the second-largest company in the field of money transfers, right behind Western Union. Moneygram’s annual report shows $11,3 million profit after entering a partnership with Ripple and its On-Demand Liquidity (ODL) solution.
According to Moneygram, the implementation of Ripple’s ODL solution “greatly reduces the speed and cost for cross-border money transfers.” Ripple also offered Moneygram access to exchanging XRP for U.S. dollars in order to grant cost reduction and liquidity capital needs.
Ripple’s help also includes proposals of further fees and costs reductions, fraud prevention, as well as collaborating with independent consultants and specialists.
Ripple’s On-Demand Liquidity tool enables instant international settlement via the use of RippleNet. Ripple estimates it only takes three seconds to settle a cross-border transaction on the RippleNet.
It was also confirmed internally that OLD enables Moneygram to drastically reduce both costs per transaction and the speed at which the company processes the international transactions.
Meanwhile, Ripple expands its presence in the Asian market. The company behind the third-largest cryptocurrency to date partnered with Deemoney – a cross-border transactions company. The partnership with Deemoney is focused on payment processing for Indonesia, Singapore, South Korea, and the Middle East region. The key goal is to provide clients with a fast and cheap way of international payments.
One of the biggest banks in the United Arab Emirates (UAE) – the National Bank of Fujairah (NBF) announced its plans to utilize RippleNet for its 18 branches in the UAE, plans to make fast, traceable and cheap settlements to India.
The recent COVID-19 pandemic and global stock markets crash focused the interest of banks toward using proven digital solutions for instant settlement. NBF’s CEO Vince Cook stated that in the fast-moving environment, “banks need to act fast and look for different and advanced ways for client service. Leveraging blockchain technologies is the key to the digital transformation in the financial sector. Such a transformation would provide a seamless experience for our clients.”
Apart from Moneygram, big banking players also use Ripple’s technology for money remittance. Banco de Santander developed a payment corridor for Latin America, using Ripple’s technology. The service is proven to be very efficient.
Late in November 2019, Ripple invested $50 million in the money-transfer company. The investment is the biggest Ripple has made so far. However, apart from the 10% equity, Ripple didn’t receive a voting right, nor a seat on the board of directors.
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