MoneyGram’s latest product real-time money sending does not make use of Ripple technology, what happened?

By Selena On Feb 16, 2020

MoneyGram giant, a familiar partner of Ripple, has just announced a new payment service that allows sending and receiving money in real-time. What is unique, however, is that they use a solution of Blockchain partner, not Ripple.

Did MoneyGram no longer need Ripple?

MoneyGram’s new service is called FastSend. This is a new service that allows customers to send money in real-time to a phone number via a dedicated website or mobile application. However, MoneyGram’s latest product does not use Ripple’s technology. Meanwhile, with Blockchain Ripple, MoneyGram efficiently proceeds to bring this product out for a long time.

Kamila Chytil, the MoneyGram CEO, said:

“FastSend uses Visa’s Direct Original Credit Transaction to transfer money to a bank account via Debit card deposits.”

Kamila Chytil, the MoneyGram CEO

Indeed, this service does not require DLT, a dedicated website, and an application using an open-source cloud-based microservice. Chytil also confirmed that Ripple is not involved in this service, MoneyGram has widely used Blockchain-based in other areas.

She said:

“Today, MoneyGram is utilizing Ripple’s On-Demand Liquidity product, which allows MoneyGram to trade FX at a corporate level using XRP. It’s a back-end treasury function that’s not consumer-facing. The technology is helping to solve the most expensive and time-consuming aspect of the current process by reducing the amount of money the company needs to park around the world, which will eventually reduce working capital needs.”

While working with Ripple, MoneyGram is also evaluating other use cases. In it, Blockchain can help solve data privacy and legal obligations through distributed ledger technology. Overall, DLT and cryptocurrencies are also important, and MoneyGram believes Blockchain will be the future of cross-border payments and global money transfers.

Besides, Chytil also praised the cryptocurrency market as always operating, unlike traditional markets, along with the ability to significantly shorten the transfer time. Lastly, she said that MoneyGram is looking at many use cases to maximize the use of Ripple’s tools and is integrating with the latest version of Ripple’s suite of services to provide a withdrawal service for all network members.

Ripple is also receiving increasing acceptance, but is XRP relevant?

Ripple is witnessing a growing acceptance among financial institutions as DLT service providers. This month, Bangladesh-based Asia Bank – which holds more than $ 3.4 billion in assets – joined the RippleNet Blockchain-based financial services network.

Besides, XRP and JPM Coin, a floating and a stable coin, respectively serve almost the same purpose. XRP and JPM Coin have been listed as examples of cryptocurrency assets designed for internal or bank interbank payments and payments.

“Ripple’s XRP is designed for inter‑ or intrabank payments and settlements”

World Economic Forum Report on “Central Bank Digital Currencies (CBDC)”#xrp #fintech #crypto #blockchain @Ripple #payments pic.twitter.com/5GKPZDJRYG

— XRP_Cro (@stedas) February 14, 2020

These are currencies issued by a country’s central banks and are being tested by several economies, including Tunisia. China’s PBoC is also said to be in the advanced stage and may launch Digital Yuan this year.

Recently, the National Bank of Egypt will use RippleNet, an option that does not combine ODL and XRP. MoneyGram, Cuallix, and Mercury FX work closely with partner exchanges to facilitate global value transfer.

XRP is more global and interbank, connecting hundreds of banks. According to Marjan Delatinne, Global Banking Manager at Ripple, regional banks and payment service providers are yearning to change and XRP through ODL and RippleNet steps to fill that gap.

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