XRP to Aid MoneyGram to Fasten International Payments

XRP to Aid MoneyGram to Fasten International Payments

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.

On-demand liquidity

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.