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MoneyGram to test cryptocurrency Ripple

MoneyGram to test cryptocurrency Ripple

Through the partnership, MoneyGram will pilot XRP payments through "xRapid", a new Ripple solution for "on-demand liquidity", the company said in a press release. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets.

For MoneyGram, Fortune said, the partnership with Ripple "may provide a way to maintain its share of the money transfer market" amid competition from a new generation of low-priced Internet-based services like TransferWise.

MoneyGram International Inc. climbed the most in 10 months after saying it was working with blockchain startup Ripple to test the use of its digital currency to move funds. Its transaction fee, at just "fractions of a penny", is also comparable to bitcoin's $30 (roughly Rs. 1,900) per transaction fee. Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour.

Companies such as MoneyGram typically use pre-funded accounts to fulfill customers' transfers, which can tie up capital.

In recent weeks, Ripple has been the subject of intense scrutiny as XRP soared exponentially to briefly become the world's second most valuable cryptocurrency after bitcoin.

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MoneyGram's CEO Alex Holmes said that his company was "looking forward to piloting xRapid".

To execute cross-border payments today requires financial institutions to rely on a complex web of relationships with correspondent banks in other countries.

The pilot project may not lead to MoneyGram adopting ripple, according to the statement.

The money transfer company clearly sees a lot of value in XRP...

But thanks to a positive announcement from Ripple, the blockchain company behind XRP, the cryptocurrency has bounced 26% off its low to US$2.04 per coin according to Coin Market Cap. "We're hopeful it will increase efficiency and improve services to MoneyGram's customers". Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them.