Published: Fri, January 12, 2018
Markets | By Rosalie Gross

Based MoneyGram tests digital currency money-transfer with startup Ripple

Based MoneyGram tests digital currency money-transfer with startup Ripple

For MoneyGram, Fortune said, the partnership with Ripple "may provide a way to maintain its share of the money transfer market" amid competition from a new generation of low-priced Internet-based services like TransferWise.

Shares of Moneygram International (NYSE:MGI) skyrocket after the company says it will test partnering with cryptocurrency Ripple on payments.

During the pilot, MoneyGram will utilize XRP, the native digital asset of the Ripple Ledger, with the aim to speed up payment flows through xRapid, Ripple's solution for on-demand liquidity.

Ripple is focused on fixing the inefficiencies and problems that exist in cross-border payments, regardless of whether those payments originate with a bank, corporate or another financial institution.

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.

Previously past year, New York-based blockchain startup R3 Holdco LLC has sued rival company Ripple Labs Inc. over a contract to purchase Ripple's digital currency XRP, according to a lawsuit filed in the Delaware Chancery Court. "By using a digital asset like XRP that settles in three seconds or less, our clients can move money as quickly as information".

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We're excited to announce our new partnership with @Ripple!

Alex Holmes, CEO of MoneyGram said: "Every day blockchain technology is changing the norm and encouraging innovation". Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid.

Following the announcement of this news, Ripple has once again begun to grow it's price.

There is a very important incentive for payment companies to join the blockchain based instant transfers, staying relevant and keeping the business. Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them.

Global bank payments are slow and the associated fees often remain unknown until after a transaction has reached its final destination.

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