newslogical.com
MoneyGram money transfer service is actively expanding to new corridors and Ripple’s SVP of Product & Corporate Development, Asheesh Birla, has said the two companies are working closely to build something great this year.
Birla said Ripple and MoneyGram are building new infrastructure to enhance their remittance operation around the world. Birla claimed the effort of the two companies combined is always very great, adding that the market development requires loads of work.
Always with the hysteria…first, Ripple and MGI are strategic partners – we are building new infrastructure together. This market development requires a ton of work, effort, and resources. Surprise, that costs money! 1/3 https://t.co/Y3BSdBH6Xx
— Asheesh Birla (@ashgoblue) February 26, 2020
In another statement, Birla said MoneyGram even working on RippleNet integration for account-to-account transfers in 2020.
MGI said today that they are actively expanding to new corridors, and even working to integrate RippleNet for account-to-account transfers in 2020. ODL reduces their capital costs because of the product’s efficiencies, not because they are receiving any fee on the other side. 3/3
— Asheesh Birla (@ashgoblue) February 26, 2020
This step is primarily associated with the ability of ODL to reduce capital costs. At the same time, payment will not be significantly high for third parties.
Besides, according to the latest MoneyGram press release, the company views Ripple as a partner in the future. According to representatives of the organization, the parties for all the time worked to expand the strategic partnership.
MoneyGram Reveals The Investment From Ripple
MoneyGram money transfer service attracted an additional $11.3 million investment from California-based fintech startup Ripple in the last 6 months of 2019.
According to the MoneyGram report, Ripple’s investments were shared to ensure a high level of liquidity in the foreign exchange market, in which technical solutions of the California startup are involved. Representatives of the translation service intend to use the totality of cooperation benefits to reduce the level of capital and increase revenues.
Recall, that Ripple technical solutions allowed MoneyGram to start processing 10% of its transactions between the US and Mexico based on startup development. During the collaboration, the translation service was able to simplify the conversion process, speeding up the sending of money.
Ripple’s investment prospects in MoneyGram are explained by the desire of startup specialists to increase XRP trading volumes. Cryptocurrency is used to service transactions in On-Demand Liquidity (ODL). The technical solution allows you to send funds abroad through special channels, by converting fiat to XRP cryptocurrency.
Note, that information about the level of startup investment in the company appeared against the backdrop of a recent scandal. The network has information about the launch of MoneyGram a new translation service, which is based on Visa technology. Participants in the crypto community have suggested that the partnership with Ripple may indicate a breakdown in relations between the parties.
However, according to the CEO of MoneyGram Kamila Chytil, the company is still working with Ripple. At the same time, the specialist noted that the startup’s technical solutions involved in the operations of the money transfer system are “not consumer-oriented”.
Source: Twitter
During a discussion organized on Twitter, the specialist also noted that the company does not intend to abandon of DLT technologies.