Payments made by MoneyGram' customers on its worldwide platform will have access to Ripple's new enterprise solution, which enables real-time FX settlement through its cryptocurrency, XRP. xRapid will become a feature in Ripple's partnerships with banks and other financial companies further down the line, as it gives these institutions the ability to unlock liquidity and access multiple corridors with one pre-funded originating account..
Last month Ripple overtook Ethereum as the second-largest cryptocurrency. Its transaction fee, at just "fractions of a penny", is also comparable to bitcoin's $30 per transaction fee.
We're excited to announce our new partnership with @Ripple! Also, the average transaction time for settlement for XRP is just two to three seconds. Transfers that used to take days will be completed in real-time, providing instant, trackable, cross-border payments.
Shares of the firm were up around 15 per cent pre-market in NY after it said it will pilot Ripple for payments.
Alex Holmes, Chief Executive Officer of MoneyGram, said, "Every day blockchain technology is changing the norm and encouraging innovation".
According to a press release, MoneyGram will test Ripple's xRapid service due to its claimed speed and cost efficiency.
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.
Following the announcement of this news, Ripple has once again begun to grow it's price.
The goal of the pilot is to "move money as quickly as information", Brad Garlinghouse, CEO of Ripple, said in a statement. Today, it is official that MoneyGram is one of them.