The well-known international payment service MoneyGram is now cooperating with Ripple in order to test its block system, which provides faster and more profitable money transfers.
Traditionally, companies like MoneyGram use pre-paid accounts in different countries, allowing them to conduct customer payments. However, such a scheme is often accompanied by serious time delays.
As noted in the official statement of both companies, Ripple’s blocking technology will allow direct transfers of funds from one country to another in the shortest possible time.
Here’s what the Ripple CEO Brad Garlinghouse said about this:
“The inefficiency of global payments affects not only banking structures, but institutions like MoneyGram … Thanks to a digital asset like XRP, which takes three seconds or even less, it is possible to make money transfers as quickly as moving information.”
After the announcement of such a promising news, the value of shares of the payment service MoneyGram grew by 10%, which is the best result since March last year. XRP tokens also showed a similar positive trend, whose value returned to the level of more than $ 2, while the last few days there was a downward trend, during which the token lost more than 20% of the value.
It is noteworthy that as a result of the implementation of the pilot program, the introduction of innovative systems by Ripple by the payment giant may not take place. Everything will depend on how good the indicators will be obtained during testing.
In any case, both companies will have to decide for themselves whether to develop further cooperation or not.
Alexandre Holmes, General Manager of MoneyGram, said that the company he heads hopes to improve the efficiency of his work with Ripple’s technologies and improve the level of customer service.