Ripple raises MoneyGram’s XRP incentives in the first quarter of 2020 to $ 16.6 million
Monetary services company MoneyGram is receiving significant benefits from the collaboration with XRP issuer Ripple. The shipping company is reporting a notable increase in the volume of transactions in the post-COVID period. There is a 57% growth in transactions compared to the previous quarter.
O report MoneyGram’s first quarter of 2020 notes, for example, that the company’s online payments received a 73% increase. The main drivers of growth are online payments made to / from the US.
In addition, app downloads have grown and 200% more people are using cell phones for payments. According to the report, Ripple is paying MoneyGram for using the company’s service. This development between the two companies is highlighted as the “Ripple market development rates”.
Ripple pays in XRP, not dollars, but MoneyGram sells anyway
MoneyGram representatives say they retain fees for supporting RippleNet. However, the company is not holding any of the coins. As soon as they receive the XRP, they sell. The finance company allows Ripple users to transact to certain jurisdictions with ease.
It is worth mentioning that MoneyGram received $ 11.3 million from Ripple in the third and fourth quarters of 2019 combined. The beginning of 2020 marks one of the most fruitful periods of the partnership between the two companies. MoneyGram CEO Alexander Holmes says he is extremely happy with accounting going well:
“I would say it was a relatively quiet quarter, in the sense of really pushing something, particularly new on the market or expanding the service. We did a lot of that in the middle of last year and went through new corridors for this service. We also have a variety of new services underway and other things that we will launch and expand later this year. ”
MoneyGram provides ODL support, confidence and liquidity
MoneyGram also spoke of their relationship with Ripple, saying that they are major service providers for the Ripple ODL system:
“The Company is compensated by Ripple with XRP for developing and bringing liquidity to the foreign exchange markets, facilitated by the ODL platform [Ripple On-Demand Liquidity], and for providing a reliable level of foreign exchange trading activity. We refer to this compensation as market development fees. “
MoneyGram’s contract with Ripple runs through July 2023. More than that, Ripple made the initial $ 50 million investment in MoneyGram last summer and paid off several large-scale companies. These companies facilitate payments around the world, provide liquidity and confidence, and so on.