Ripple has always been on the receiving end of good news as far as tech adoption and partnerships go, with many, many established financial entities already conducting pilot programs with the technology. There have been multiple reports that state how Ripple’s cross-border payments systems have reduced international transaction times to a mere few seconds from what is typically a days long process.
Now, there’s even more stellar news coming out, as United States payments company MoneyGram has confirmed that it is using Ripple’s xRapid for commercial activity. The news was revealed to the public after one Reddit user had been listening to a MoneyGram’s earnings call where he learnt that xRapid was officially being used. However, MoneyGram made an official announcement about the news on August 1 saying the following,
The commercial agreement allows MoneyGram to utilize Ripple’s xRapid blockchain product, as well as XRP, Ripple’s cryptocurrency, to facilitate cross-border settlement. The Company expects that this will reduce working capital needs and have the potential to generate additional earnings and cash flow.
This is a really big step for the Ripple as MoneyGram as it facilitate transactions worth about $25 billion. However, it may not be used comprehensively, perhaps only for certain corridors - and maybe it will expand to have a greater presence in MoneyGram’s business operations in the years to come.
Users noted that after the Q2 financial report, MoneyGram’s stock prices rose.
The introduction of xRapid into MoneyGram’s commercial activity would result in much savings for the company - and this would prevent them from running into losses, like they did in Q2 2019.