MoneyGram share price rises after Ripple (XRP) pilot announced

MoneyGram share price rises after Ripple (XRP) pilot announced

Moneygram will make use of XRP in their payment flows for quicker, cheaper transfer of money.

Ripple, a bitcoin rival, temporarily became the second-largest cryptocurrency by market value last month when it moved past ethereum, but its price has since dropped. Its transaction fee, at just "fractions of a penny", is also comparable to bitcoin's $30 per transaction fee.

While existing money transfer companies need to have pre-funded accounts in different nations to ensure they are able to facilitate transactions, using XRP means the company can directly transfer funds from one country to another instead, Ripple chief executive Brad Garlinghouse said.

As part of the arrangement, MoneyGram will test the use of Ripple's cryptocurrency, XRP, to move funds in a faster and cheaper way.

We're excited to announce our new partnership with @Ripple! To put things into perspective, MoneyGram transfered over $600 Billion in cross-border payments in 2016. The average transaction time for XRP is 2 to 3 seconds with other top digital assets ranging from 15 minutes to an hour for a payment transaction.

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Commenting on this, Alex Holmes, CEO of MoneyGram, said: ‎"Ripple is at the forefront of blockchain technology and we look forward to ‎piloting xRapid".

While banks around the world are experimenting with blockchain (the underlying technology behind bitcoin and Ripple) to lower money transfer costs, skeptics of Ripple say its XRP currency is unnecessary to carry out transactions.

This strategic partnership will allow Moneygram to understand how blockchain technology and XRP can improve the efficiency of its global treasury operations and consumer experience.

Following the announcement of this news, Ripple has once again begun to grow it's price. Today, it is official that MoneyGram is one of them.

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