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 created to provide on-demand liquidity to financial institutions. Ripple's transaction fees still remain fractions of a penny, while Bitcoin fees are approximately $30 per transaction. The move helped Ripple's popular bitcoin alternative, XRP, move higher on the day-defying a nearly-universal cryptocurrency selloff. Also, the average transaction time for settlement for XRP is just two to three seconds. The CEO of Ripple stated that the company will probably build effectiveness and enhance administrations to MoneyGram's clients.
The goal of the pilot is to "move money as quickly as information", Brad Garlinghouse, CEO of Ripple, said in a statement. Ripple most recently announced it would be teaming up with Amex and Santander for a blockchain pilot to speed up payments between the USA and the United Kingdom.
MoneyGram, the world's second-largest money transfer company, stated that it was "hopeful" the partnership would "increase efficiency and improve services to MoneyGram's customers".
US money transfer giant MoneyGram is testing the blockchain waters through a partnership with Ripple, the owner of the XRP digital currency.
Ripple's price dropped about 20% when Coinbase announced that they're not keen on adding any new coins at this time. As part of the agreement, MoneyGram will pilot XRP in their payment flows and also explore integration into Ripple's ecosystem through xVia.
Ripple is up 10% today as of 10:45am ET, trading at $2.16 according to data from CoinMarketCap.
Bitcoin wiped out more than $2000 in value after the initial announcement, but prices started pairing earlier losses, thanks to the intervention from the South Korean president. The members of the Ripple's consortium includes many big banks and payment companies like American Express, UBS and Santander.