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At the start of 2018, MoneyGram announced its partnership with Ripple Labs and recently many have started speculating that they have already adopted the blockchain. To end the speculation, just a couple of days ago, on November 2, MoneyGram made it known through its Twitter account that they are testing Ripple xRapid for international processes internally. The pilot program is not intended for its users, for now.
MonyGram International Inc. is a company headquartered in Dallas, Texas since 1940. Their business includes global fund transfers and paper financial products. The company that drives Ripple's blockchain is not ordinary as it is the second largest international remittance service in the world with a presence in over 347,000 agencies spread across more than two hundred countries.
When it comes to sending money abroad without using a bank, it is unlikely to get bigger than MoneyGram. MoneyGram's services are relatively fast and cheap compared to the traditional SWIFT system. The transfer fee is normally around 5% and the payment time may be hours instead of days.
The current competitive advantage held by MoneyGram has to do with the fact that it is not based on the traditional financial system, as in the case of most other companies in the sector. But they have found a way to develop a proprietary system for internal use that eliminates a lot (but not all) of the friction usually involved in transferring money across borders. They have their parallel global financial system, so to speak.
Hi, this is a pilot program being tested on the internal processes of MoneyGram International and is not intended for use by consumers.
– MoneyGram (@MoneyGram) 2 November 2018
As noted in the beginning, MoneyGram has used its official Twitter account to announce that it has adopted Ripple's xRapid platform in a pilot program that will test the utility of the new technology in improving services and services. MoneyGram customer experience.
This does not mean that customers of the company will be able to use xRapid to make transactions, but rather that they will be incorporated into the company's internal work to integrate their current proprietary systems. Therefore, customers should be able to experience a difference with regard to the elimination of certain frictions and the payment of lower transfer fees, even if they can not use them directly.
This is a marriage made in heaven for both Ripple Labs and MoneyGram. The goal of Ripple has never been to have its native currency (XRP) be a retail or a means to store wealth, but a mediating currency that makes the movement of money all over the world cheaper , fast and reliable.
Ripple is slowly but surely accomplishing this by securing strategic partnerships with many of the world's leading banks and financial institutions. MoneyGram, on the other hand, always wants to have a larger share of the world market and their user base could increase significantly if their service becomes significantly cheaper and faster.
Again, it is important to clarify that this does not yet mean adoption. It is a pilot test only for internal use of MoneyGram, in the hope that internal liquidity transfers will be improved for the company.
A Twitter user with the manager @MikeNardolillo made a fairly noteworthy comment (and agreement) as he He said,
Many entities that pilot xrapid have already incorporated it into the back-end for their customers. When will you do the same? In this way you can offer the fastest or most economical route to your consumers, instead of a too expensive remittance. Customer-centered approaches will be the future.
Ripple is probably the blockchain project that drives stronger for the mainstream adoption of cryptocurrency (in particular XRP). While it is also difficult for money to be useful as a retail token, it remains the priority that the traditional financial system adopts for internal use.
These types of ads are critical to the cryptosphere because they show that people, companies and investors outside the cryptosystem are slowly but surely understanding the advantages of cryptocurrencies, starting to trust them and starting to try them out as valid solutions. It is even more significant when they come from banking and financial institutions that have been the most skeptical and pessimistic about the blockchain, its reliability and its applications.
If and when MoneyGram fully adopts Ripple's xRapid product in production, it will increase exponentially the demand for XRP that could drive up the price. And unlike the current state of most coins in crypto markets, this increase will not be purely speculative but driven by the real world economy.
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Disclaimer: this article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.
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