Published: Thu, January 11, 2018
Money | By Armando Alvarado

Ripple (XRP) and MoneyGram (NASDAQ: $MGI) Partner to Modernize Payments

Ripple (XRP) and MoneyGram (NASDAQ: $MGI) Partner to Modernize Payments

Shares of MoneyGram International Inc jumped 10.5 percent on Thursday, after the money-transfer company said it partnered with blockchain firm and bitcoin-rival Ripple.

MoneyGram will pilot the use of XRP, the native digital asset of the XRP Ledger, in payment flows through xRapid, Ripple's solution for on-demand liquidity.

Ripple claims that XRP is the most efficient digital asset for payments with transaction fees at just fractions of a penny, compared to Bitcoin fees of about $30 per transaction.

This partnership with MoneyGram is crucial for both - the technology behind Ripple and the cryptocurrency of XRP.

"The inefficiencies of global payments don't just affect banks, they also affect institutions like MoneyGram".

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Meanwhile, Ripple saw the rise -then fall, then rise again-of XRP's value, the digital asset used to move money and value across the Ripple network.

Brad Garlinghouse, the CEO of Ripple stated that this is a strategic partnership and would help users reduce the cost of money transfer. Instead, by using XRP Moneygram can directly transfer funds from one country to another instead.

Commenting on this, Alex Holmes, CEO of MoneyGram, said: ‎"Ripple is at the forefront of blockchain technology and we look forward to ‎piloting xRapid". The two agreed upon expanding their digital payment methods globally, but the US had blocked it, sending Moneygram shares down over 9 percent.

While banks around the world are experimenting with blockchain (the underlying technology behind bitcoin and Ripple) to lower money transfer costs, skeptics of Ripple say its XRP currency is unnecessary to carry out transactions. "We're hopeful it will increase efficiency and improve services to MoneyGram's customers".

The news sent the shares of MoneyGram (MGI) up more than 11% and the price of XRP up more than 3%, according to Coindesk.

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