RIPPLE AND MONEYGRAM
Ripple-backed remittance services provider MoneyGram has brought its services to India. MoneyGram will serve millions of the Indian population through the MoneyGram global payments platform,the EbixCash network.
Ripple has already invested $50 million in MoneyGram to jointly offer blockchain-based remittance services. MoneyGram recently said that it processes 10% of its transactions between the U.S. and Mexican corridor via Ripple’s payments solution On-Demand Liquidity (ODL) that leverages the XRP cryptocurrency.
What is EbixCash?
EbixCash, a wholly-owned subsidiary of Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services, together with MoneyGram International, Inc. (NASDAQ: MGI), a global provider of innovative money transfer services, announced a strategic partnership to bring enhanced services to millions of consumers across India.
Ebix will use a "Phygital" strategy that combines 320,000 physical distribution outlets in many Southeast Asian Nations, the Company's EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange , travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets.
EbixCash's Forex operations have emerged as a leader in India's airport Foreign Exchange business with operations in 32 international airports including Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting over $4.8 billion in gross transaction value per year.
EbixCash's inward remittance business in India conducts approx. $6.5 billion gross annual remittance business, confirming its undisputed leadership position in India. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia's leading travel exchanges with over 2,200+ employees, 212,450+ agent network, 25 branches and over 9,800 corporate clients; processing an estimated $2.5 billion in gross merchandise value per year.
What MoneyGram Executives have to say
Multiple MoneyGram executives have heaped praise on its strategic entrance into the Indian market.
"MoneyGram is focusing on diversification by investing in both its digital business and in key international markets such as India," said Alex Holmes, MoneyGram Chairman and Chief Executive Officer. "Partnering with the largest financial exchange in the country is an important milestone, and we are excited to enable EbixCash to plug into the MoneyGram platform to access our customer-centric capabilities and services."
"India remains the world's top recipient of remittances, and we're excited to better serve this critical market through our partnership with EbixCash, a leading brand with an approximate 80% share of locations in the country," said Grant Lines, chief revenue officer of MoneyGram."
Robin Raina, Ebix Inc. Chairman, President and Chief Executive Officer said, "We are excited with the nature of this strategic partnership which is a win-win for both sides. Being a master agent for MoneyGram, our interests will now be perfectly aligned to ensure that MoneyGram's reach is spread across the length and breadth of India through our strong franchisee network. We see this as a game changing deal on many fronts for us and will thus put all of our might behind this partnership."
In conclusion it is not clear whether MoneyGram will utilize Ripple’s blockchain platform in the country but it is implied with ODL already being utilized between the U.S. and Mexican corridor.
Kasezga Tembo, CIO, Zog Capital