One of the biggest business arenas in the modern world is the global remittance market. People these days can make any cross-border payment easily through various money transfer companies. For instance, cross-border payments, aimed to either settle some business transactions or to remit finances to home countries family members, totaled nearly $600 billion in 2016.
Unfortunately, companies and the customers feel a headache that comes with the slow and costly process of making payments due to the existing model that requires liquidity from pre-funded accounts.
For this reason, MoneyGram, a big money transfer company, wants to use XRP to cheapen and quicken cross-border payments for its customers.
Ripple’s on-demand liquidity product, xRapid, is what MoneyGram will utilize in making XPR payment flows. It enables customers to get real-time payments status insight and real-time XRP foreign exchange settlement to reduce fees and costs.
MoneyGram’s CEO, Alex Holmes, in a press release said that xRapid together with Ripple’s blockchain technology might improve its customers’ services efficiency.
Cross-border payments improvement
Even if the cross-border payments comes from a corporate, bank or any financial institution, ripple can fix underlying problems and inefficiencies.
Ripple’s CEO, Brad Garlinghouse, suggests that since the payment problem is not limited to banks, XRP as a digital currency can interchange money quickly ( less than three seconds) thereby solving the problem.