Moneygram Confirms Partnership with Ripple, XRP Price likely to Surge

Moneygram Confirms Partnership with Ripple, XRP Price likely to Surge

Moneygram Confirms Partnership with Ripple, XRP Price likely to Surge

"Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour", the companies said in a statement.

Shares of the money-transfer company jumped 10 percent to $13.39 at 9:37 a.m.in NY, the most intraday since March and second-best performance in the Russell 2000 Index.

"This notion of using digital currency as a form of bridge funding is not unique to XRP", Fortune said, noting that past year, IBM and a consortium of banks in the South Pacific announced a blockchain transfer arrangement that uses a cryptocurrency called Stellar.

Ripple, a blockchain company and rival to bitcoin, on Thursday announced a tie-up with Dallas-based money transfer giant MoneyGram. XRP is an efficient digital asset for blockchain powered payments with transaction fees at just fractions of a penny. Consumers don't have any reason to be loyal to one payment transfer company and so, if a competitor uses advanced technology promising a 4-second transfer, customers would flock and the payment companies will lose the business.

To execute cross-border payments today requires financial institutions to rely on a complex web of relationships with correspondent banks in other countries. Ripple most recently announced it would be teaming up with Amex and Santander for a blockchain pilot to speed up payments between the US and the United Kingdom.

Meanwhile, MoneyGram CEO Alex Holmes is optimistic that Ripple is the right partner to help his company cash in on the growing benefits of its underlying technology.

For MoneyGram, the tie-up with Ripple may provide a way to maintain its share of the money transfer market. They cited the low cost and speed of XRP transactions. The company says its transaction fees are much lower than those for traditional money transfer and competing crytpocurrencies like bitcoin. That makes the process for payments costly and slow.

"We are excited about this pilot and a long-term strategic partnership with MoneyGram".

Related news