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Following a year-long partnership with Ripple, MoneyGram International Inc (NASDAQ: MGI) in its Q2 2020 report revealed that it got $15.1 million from the blockchain news.
In its Q2 2020 performance report released on July 30th, MoneyGram International Inc (NASDAQ: MGI) has revealed that it received $15.1 million from Ripple, the blockchain firm that widely uses the XRP coin in its solution. As an existing partner of the crypto-centric firm, the $15.1 million sum was categorized as “market developmental fees” contributed to the payment giant’s Total revenue of $279.8 million recorded in the second quarter.
The $15.1 million obtained from Ripple includes a $6.3 million offset by related transaction and trading expenses, leaving $8.8 million as a net benefit. The MGI’s total revenue shows a 106% year-on-year growth, attributable to the increased demand in cash processing during the COVID-19 pandemic, which has come off to benefit stakeholders in the financial services more.
Highlights of Ripple and MoneyGram (MGI) Alliance
Ripple and MoneyGram (MGI) entered into a partnership back in June 2019 to leverage XRP in forex settlements as part of MoneyGram’s cross-border payment process.
As detailed on Ripple’s site, the partnership will focus on the xRapid product, a solution for on-demand liquidity, which reduces reliance on pre-funding by enabling money to be sent from one currency and instantly settled in the destination currency. It leverages XRP, the native digital asset of the XRP Ledger, as a real-time bridge between the sending and receiving currencies.
XRP remains the most efficient digital asset for settlement with transaction fees at just fractions of a penny, compared to others of about $30 per transaction. Similarly, the average transaction time for XRP is two to three seconds with other top digital assets ranging from 15 minutes to an hour.
As part of the deal, Ripple had invested $50 million in MoneyGram as of November 2019. Commenting on the partnership, Alex Holmes, MoneyGram Chairman and CEO said:
“Our partnership with Ripple is transformative for both the traditional money transfer and digital asset industry – for the first time ever, we’re settling currencies in seconds. This initial success encourages us to expedite expanding our use of On-Demand Liquidity. Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services.”
Since the partnership came into effect, the dividends have been obvious. MGI reported it sold $11.3 million XRP in its 2019 annual report. The cooperation has contributed in part to Ripple’s current growth.