Ripple’s ability to provide on-demand liquidity and instant transfer within seconds makes it one of the most preferred blockchain-based payments solution.
The flow of good news for Ripple (XRP) doesn’t seem to stop and this time the blockchain payment’s startup has collaborated with the Dallas-based giant for money transfer – MoneyGram. The two companies have come together to pilot XRP in MoneyGram’s payment flows, wherein both these companies will study and understand MoneyGram’s integration in Ripple ecosystem, through xRapid which is Ripple’s solution designed to provide on-demand liquidity to financial institutions.
What makes Ripple as the preferred choice is that by using XRP tokens, institutions can get on-demand liquidity and foreign exchange to instantly make global payments without the need for multiple corresponding accounts. As Ripple’s technology is based on the blockchain, the payments flow is completely transparent and the fees are lower.
Both the companies touted Ripple’s ability to handle instant payments saying “XRP remains the most efficient digital asset for payments with transaction fees at just fractions of a penny, compared to Bitcoin fees of about $30 per transaction. Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour.”
Brad Garlinghouse, CEO of Ripple, described this collaboration with MoneyGram as a strategic one. Garlinghouse said: “The inefficiencies of global payments don’t just affect banks, they also affect institutions like MoneyGram. Money transfer companies are incredibly important because they help people get money to their friends and loved ones.”
He further continued saying “We are excited about this pilot and a long-term strategic partnership with MoneyGram. By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information.”
This shows that Ripple is emerging as a key supplier of technology support for money transfers not only to banks but also to other institutions having their own payments wallet. MoneyGram is said to be the second largest money transfer company in the world. By collaborating with Ripple, MoneyGram gets to dip its toe with the emerging blockchain technology and probably can also have an early edge in the market, with its other competitors.
Alex Holmes, Chief Executive Officer of MoneyGram, said, “Every day blockchain technology is changing the norm and encouraging innovation. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid. We’re hopeful it will increase efficiency and improve services to MoneyGram’s customers.”
Ripple, whose price slipped by almost 50% since the start of this week is finally back on an upward momentum as this news has given investors every reason to cheer. In the past 24-hours, Ripple has surged by almost 20% and at the price time, the cryptocurrency is trading at $2.09 with over $5 billion trading volumes and over $81 billion market cap.
In the past one month, the price of Ripple has remained continuously on an upward trajectory as multiple news of the Ripple technology being tested by several banks are coming out. The journey started with Japanese and Korean banks announcing about testing this technology at their end. Moreover, in November 2017, the blockchain payments startup teamed up with Santander and American in order to speed up cross-border payments between U.S. and U.K.