The world has indeed taken advantage of the digital wave and using it in every sphere of life including management of money and transfers. MoneyGram is a hugely popular innovative money transfer platform that intends to connect people across the globe by establishing firm foundations of financial transactions. With more than 2 billion people worldwide have little or no access to a bank account benefit from MoneyGram’s services.
At present, the second-largest money transfer enterprise has registered an $11.3 million profit after its profitable partnership with Ripple and its ODL solution. The company claims that with the use of the ODL solution, the cost of cross-border transfers has reduced significantly as per its Annual report. The reduction in cost further boosted the cash flow but along with it MoneyGram also did not shy away from implementing several other cost reduction measures and fraud aversion tools.
In a Press release, the company’s official spokesperson asserted that the funds from Ripple came in a spread of 4 quarters; that is $8.9 million in the 4th quarter, $2.4 million in the third quarter taking the total to $11.3 million.
MoneyGram and Ripple made it formal in January 2018 when it had announced its future plans and partnership. It also made a proclamation of integrating XRP into its payment system which will be a collaborative effort on cross-border payment facilitation.
Ripple invested a sizeable $50 million and got its equities in return which gave it a 10% stake without having a say on the board. Ripple too has made inwards especially in the Asian markets after its strategic partnership with DeeMoney that facilitates currency exchange between several nations like Israel, the Middle-east, Gulf, etc. Technology has been used to the hilt to enable the faster exchange of financial payments which is the current need now.
The partnership is stated to be one of the most strategic moves made by both the firms, but it has from the beginning asserted that not all its transfer methodologies will be administered by Ripple. It also uncovered and announced a new service called FastSend that will also allow real-time money exchange based on Visa.
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