According to Securities and Exchange Commission (SEC) data, MoneyGram has won more than $ 11 million from blockchain-based payment company Ripple Labs.
In a MoneyGram press release, the company stated that it had received the money from Ripple over two quarters: $ 8.9 million in the fourth quarter and $ 2.4 million in the third, a total of $ 11.3 million. Revenue for the fourth quarter was $ 323.7 million.
“MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale up the use of blockchain capabilities.”
Nothing in the SEC archives indicates what Ripple’s investment will be used for. However, the MoneyGram agreement with Ripple has previously allowed XRP and its blockchain product ODL (On-Demand liquidity) to be used to facilitate cross-border payments.
“[MoneyGram] is compensated by Ripple for developing and bringing liquidity to foreign exchange markets, facilitated by the Ripple blockchain and offering a reliable level of foreign exchange trading activities. The company expects that, on a scale, this partnership will reduce our working capital requirements and generate additional income and cash flows. “
MoneyGram already had financial ties with Ripple. The two companies announced a partnership in January 2018 for MoneyGram to integrate XRP into its payment system.
In June 2019, the two entered into a partnership to collaborate on cross-border payments and settlements with digital assets. Ripple followed with an investment of $ 50 million, completed in November.
Despite this close working relationship, not all methods of money transfer are handled by Ripple. MoneyGram recently unveiled FastSend, a service that allows real-time money to be sent based on Visa.