Ripple has partnered with Moneygram to pilot XRP in their payment flows.
Moneygram is going to use XRP to facilitate cross-border remittances around the world. Currently, money transfer companies have pre-funded accounts across the globe. In this way, when someone from the United States sends money to someone in Manila, the money is already on the local branch. This practice provides absolute liquidity for money-transfer companies such as Moneygram.
With the use of XRP, Moneygram can transfer fund directly from one country to the next. According to Mr. Brad Garlinghouse, CEO of Ripple:
By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information.
MoneyGram will use Ripple’s xRapid service, which, in our earlier report, is the company’s answer for easing cross-border transactions. The press release noted the difference in transaction time and fees between XRP and Bitcoin.
XRP remains 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. Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour.
Ripple’s XRP is currently the world’s 3rd best-performing cryptocurrency behind bitcoin and ether. It recently had a rally in during the last weeks of 2017 when all top coins were down.
Ripple was in the news lately with an announcement of its focus in Asia. The company sees India and Japan as key countries to test its xRapid service.
MoneyGram is a money transfer company with presence in the Philippines.
Currently, users from the Philippines cannot purchase XRP directly. SCI Ventures announced that at one point, they will include Ripple in their BuyBitcoin.ph platform.