In mid-2019, the cross-border blockchain-based company Ripple and the remittance giant MoneyGram announced a strategic partnership. The terms of the partnership included Ripple acquiring 10% of MoneyGram’s shares, worth $30 million (at a price of $4.10/share).
A few months later, MoneyGram stated that they were expecting a positive fourth quarter, in terms of revenue, due to the implementation of Ripple’s technology xRapid. On that note, their latest press release stated that MoneyGram Online achieved a 39% year-over-year transaction growth in the aforementioned quarter.
The release also stated that MoneyGram had benefitted from Ripple to the amount of $11.3 million. The report states that the company “is compensated by Ripple for developing and bringing liquidity to foreign exchange markets, facilitated by Ripple’s blockchain, and providing a reliable level of foreign exchange trading activity. The Company expects that this partnership, at scale, will reduce our working capital needs and generate additional earnings and cash flows”.
According to Alex Holmes, CEO of MoneyGram, 2019 was “a pivotal year for us as we continued to execute our digital transformation and deliver a differentiated experience to our customers”. Embracing new technology that allow businesses to offer better products and services to their customers is a clear way towards success. Of course given due diligence is properly performed.
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