Ripple Partner MoneyGram ‘Doesn’t Utilize ODL or RippleNet’ Despite Being Paid Millions in XRP

Ripple Partner MoneyGram Says it ‘Doesn’t Utilize ODL or RippleNet’ for Which it was Paid Millions in XRP

“It’s still business as usual,” says Ripple CEO, maintaining that the company remains “on the right side of the law and of history.”

Amidst the ongoing distancing from XRP, Ripple partner MoneyGram also issued a statement.

“The Company has not currently been notified or been made aware of any negative impact to its commercial agreement with Ripple,” said MoneyGram, one of the largest companies involved in cross-border P2P payments and money transfer.

The statement came in light of the recent lawsuit filed by the U.S. Securities and Exchange Commission against Ripple Labs Inc.

“MoneyGram is not a party to the SEC action,” said the company adding, they will continue to monitor for any impact as things unfold.

MoneyGram came into a commercial agreement with Ripple in June 2019 to use the fintech’s foreign exchange (FX) blockchain trading platform, On-Demand Liquidity (ODL) for the purchase or sale of four currencies. For this, Ripple paid millions of dollars in XRP to MoneyGram. However, the company revealed that, as a matter of fact,

“MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise.”

Throughout this collaboration, MoneyGram actually continued the use of other traditional FX trading counterparties and says it “is not dependent on the Ripple platform to accomplish its FX trading needs.”

“There were a discussion on Twitter about precisely how MoneyGram used ODL, other ways they could use it, and the advantages and disadvantages of each mechanism,” commented David Schwartz, CTO of Ripple on MoneyGram distancing itself from the company.

This week, XRP got into hot water as the SEC charges Ripple and its two executives, board member and former CEO Chris Larsen and current CEO and board member Brad Garlinghouse for allegedly selling unregistered securities.

This resulted in the price of the digital asset crashing more than 60% and taking the entire crypto market down with it, only to recover the gains to trade around $0.30 XRP -6.52% XRP / USD XRPUSD $ 0.30
-$0.02 -6.52%
Volume 9.97 b Change -$0.02 Open $0.30 Circulating 45.4 b Market Cap 13.43 b
6 h Ripple Partner MoneyGram Says it ‘Doesn’t Utilize ODL or RippleNet’ for Which it was Paid Millions in XRP 10 h Oldest Crypto Exchange Bitstamp to Suspend XRP Trading & Deposit on Jan. 8 2 d XRP Carnage Begins as the Delisting Commences
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All of this also resulted in the suspension of XRP trading and deposits on several trading platforms. Just yesterday, the oldest crypto exchange Bitstamp suspended the XRP services for its US customers, starting January 8.

OSL, Beaxy, and CloseTowers are other exchanges that suspended XRP trading on their platform while Bitwise Asset Management also liquidated its position in the digital asset.

Garlinghouse meanwhile, maintains that Ripple remains “on the right side of the law and of history.”

“It’s still business as usual,” said Ripple CEO in a publicly shared note sent to the company’s employees this week.

“The SEC is completely wrong on the facts and law and we are confident we will ultimately prevail before a neutral fact-finder.”

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Author: AnTy

Ripple-Partner, MoneyGram, Sees 107% Growth in Customer Transactions YoY: Q1 2020 Report

MoneyGram International Inc. (MASDAQ:MIG) peaked at $4.03 on June 10, 2020, representing a sharp 20% increase since the markets opened on Monday. The rise comes in light of the recent release of positive reports on the company’s financial health and customer growth in Q1 2020.

MoneyGram registers 100% YoY growth in customer transactions

In a press release, MoneyGram reports a year-over-year (YoY) growth of over 100 percent in customer transactions on its platforms in Q1 2020. At the end of last year, the international remittance money processor received a $20 million funding from the Ripple Inc. to boost its payment solutions. The funding completes its $50 million offerings for a 15% stake in MoneyGram to run its pilot program for testing the digital token XRP.

In Q1 2020, the company registered expansionary customer transaction growth rates of 57% despite the challenging COVID-10 global pandemic. Ripple Inc. denies any part in MoneyGram’s exploding numbers but remains heavily invested in the company. In February 2020, Ripple disbursed an $11.3 million funding (in XRP) in “money development fees” calling it an incentive program. Alex Holmes MoneyGram Chairman and CEO said,

“I’m excited to report that our strong digital growth continued to accelerate in May, highlighting yet again the incredible progress we’ve made as an organization to focus on our strategy to lead the industry in digitizing the movement of money.”

“May was a good month”

MoneyGram’s online platform was the best performing platform, registering a 107% YoY growth rate as of May 2020. This was mainly driven by the launch of their mobile device application –contributing to over 80% of the online transactions. Kamila Chytil, Chief Operating Officer at MoneyGram said,

“We’ve built a modern, mobile, API-driven company that is resonating with millions of consumers across the globe.”

The account deposit and mobile wallet transactions also experience an 80 percent YoY growth but the past month was more impressive registering a monthly growth rate of 156%.

The growth of MoneyGram’s transaction also stems from the deep roots of the company in 200 countries (70 countries enjoying the digital services). MoneyGram recently announced a partnership with Federal Bank in India to facilitate instant transactions in the country. There was also speculation that MoneyGram may be acquired by Western Union, but there hasn’t been an official word from either company.

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Author: Lujan Odera

MoneyGram to Offer Direct Deposits in India Via Federal Bank; Both Members of RippleNet

MoneyGram will now offer direct deposits to India following its partnership with Federal Bank, one of the leading financial institutions in the country. According to a recent announcement by the payment system service provider, this alliance will be strategic in offering its Indian clients an account credit option via the Federal Bank. The MoneyGram announcement reads,

“Through this partnership, millions will be able to receive deposits directly in their bank accounts without leaving the confines of their homes which is imperative in the current situation.”

As highlighted, this milestone is expected to further assist in COVID-19 mitigation following the ‘new normal’. Most economies have moved towards e-payment networks in a bid to keep the virus at bay. Given this situation, the alliance between MoneyGram and Federal Bank is especially important.

Furthermore, World bank stats indicate that India continues to dominate the global remittance market with 2019 recording over $82 billion. Notably, Federal bank enjoys 15% of this market and is therefore expected to significantly boost the partnership. MoneyGram’s Chief Revenue Officer, Grant Lines, echoed that they are confident of the value proposition by Federal Bank,

“Federal Bank is known throughout India as a pioneer in digitizing financial services, and we’re proud to partner with them to enable millions of people the option to receive money directly into their bank account.”

MoneyGram’s Venture in Ripple for International Remittances

Ripple, popularly known for its remittances service based on RippleNet, had already began working with MoneyGram. The two got into a partnership back in June 2019 which spiked hopes of MoneyGram leveraging a blockchain based platform for its payment services. This is, however, yet to happen despite the market adrenaline at the time.

In a recent Q1 earnings call, the CEO of MoneGram, Alexander Holmes, said that the quarter had been quite slow for the partnership. Nonetheless, they have some work in progress and boasted of the future prospects,

“We also have a variety of new services in the pipeline and things that we’ll be rolling out, and expanding with later this year…. But from a capability perspective from a service quality and from a performance, it’s been a really good — been a really good quarter.”

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Author: Edwin Munyui

Ripple SVP: $11.3M MoneyGram Payout Is No Different Than A Visa Or PayPal “Incentive Program”

  • In a business move “MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities”
  • Ripple’s “financial benefit” of $8.9 million in the Q4 and $2.4 million in Q3 will be accounted for as contra expenses
  • We are building new infrastructure together and it costs money – Ripple SVP, Asheesh Birla

Ripple partner, MoneyGram, which uses Ripple’s On-Demand Liquidity (ODL), using the digital asset for cross-border remittances, received over $11 million over 2019 from the firm, according to a legal filing with the US’ Securities and Exchange Commission (SEC).

MoneyGram has stated that it’s currently looking to expand its existing partnership with Ripple.

“MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities,” the announcement continues. “As the first money transfer company to scale the use of blockchain capabilities.”

MoneyGram’s end of year financial results of the company for 2018 revealed their income at a little over three hundred million. This income coincided with a decline of 6% from 4Q18 and excluded “$8.9 million of benefit from Ripple.”

Overall, in 2019, MoneyGram’s reported a revenue decline of 11%.

According to MoneyGram, this amount will be accounted for as “contra expenses” rather than revenue after consulting with the SEC.

In the prior quarter, the company had treated “Ripple market development fees” as revenue. But now, this Ripple “financial benefit” of $8.9 million in the fourth quarter, and $2.4 million in the third quarter are considered as amounts to offset existing operating expenses in its Transaction and Operations Support.

Ripple Paying MoneyGram to use their Software & XRP

In June 2019, Ripple announced a $50m strategic partnership deal with the money transfer giant. However, there was no mention of the $11.3 million MoneyGram received from Ripple until now.

In Jan. 2018, the first reports came in that MoneyGram would test Ripple’s xRapid solution. In Nov. last year, it was revealed that XRP has been powering 10% of MoneyGram’s Mexico-US corridor transactions through ODL.

A few months ago, it was disclosed by MoneyGram’s Q3 filing that the company “allows MoneyGram to utilize Ripple’s On-Demand Liquidity blockchain product (formerly known as xRapid)” and XRP to facilitate cross-border settlements.

The reimbursements by Ripple to MoneyGram aimed to develop and bring liquidity to foreign exchange markets.

While the new filing doesn’t specify what the $11.3 million was for but it looks like the $2.4 million in Q3 and $8.9 million are given to the MoneyGram to use XRP.

Market Development Costs Money

On this investment, Ripple SVP, Asheesh Birla said:

“Ripple and MGI are strategic partners – we are building new infrastructure together. This market development requires a ton of work, effort, and resources. Surprise, that costs money!”

He further pointed out that Visa (which “allocated a casual $4.1B on incentives in 2019”) and PayPal had also employed “incentive programs” to boost their network adoption. Birla finished saying,

“MGI said today that they are actively expanding to new corridors, and even working to integrate RippleNet for account-to-account transfers in 2020. ODL reduces their capital costs because of the product’s efficiencies, not because they are receiving any fee on the other side.”

Related News:

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Author: AnTy

MoneyGram CEO Alex Holmes: Ripple (XRP) Was The Best Fit For The Company

In a recent CNN International interview, the CEO of MoneyGram Alex Holmes explained that Ripple and the services provided were very important for the company considering they were performing a deep digital transformation. At the same time, he talked about how XRP is helping the company to reduce costs.

Alex Holmes Talks About Ripple

In this recent conversation, Mr. Holmes explained that 60% of all transactions around the world are performed using cash. However, in the last 24 months, MoneyGram expanded its digital capabilities to 60 countries and improved its digitalization strategy.

Ripple has also invested $50 million in MoneyGram and Alex Holmes has also talked about their relationship with Ripple and the XRP cryptocurrency, one of the largest in the market. He explained that moving money cross border is quite complicated because money itself doesn’t move.

Holmes said that what moves across borders is data, which is very different from money itself. MoneyGram is currently using 122 currencies with funds in bank accounts so as to provide users with cash around the world and instant liquidity.

With Ripple and the cryptocurrency space, Holmes believes that there is a technology available to move money and data among countries. Ripple allows companies such as MoneyGram to reduce their trapped liquidity around the world, which is located in different accounts and cannot be used for other things.

At the moment, Ripple has the best platform to efficiently move money across borders. Ripple can reduce costs and make it simple for firms to transfer funds from one country to another. Furthermore, he stated that the XRP cryptocurrency is very innovative and that Ripple is already helping banks and other financial institutions to improve the services and solutions they offer to their clients.

It is worth mentioning that the CEO of the company explained that he does not currently own any XRP and the company tries to sell the XRP it usually handles as soon as possible due to regulatory issues.

He finally stated that regulations are changing at all times and that this does not allow them to hold, for any period of time, any crypto assets.

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Author: Carl T

Ripple Partner MoneyGram Expands its Cross Border Service with Visa to Spain and the Philippines

  • MoneyGram is extending its debit card deposit service internationally in collaboration with Visa via Visa Direct
  • The service allows MoneyGram customers to send money in real-time
  • This adds 50% new users to MoneyGram and retention rates that are “outperforming expectations”

The global provider of money transfer services MoneyGram is now extending its debit card deposit service internationally to Spain and the Philippines, the company announced on Dec. 4. The company launched this service in collaboration with Visa through its real-time push payments platforms Visa Direct.

MoneyGram is the first company to allow cross-border transfers from the US using Visa Direct and will be offering the service in more areas of the world very soon.

“Cross-border digital growth is a key strategic priority, and we will continue to lead the industry with innovative products and services,” said Alex Holmes, MoneyGram Chairman, and CEO.

Rapid Expansion to new Markets Worldwide

Visa Direct that enables payments to more than a billion cards worldwide allows its customers to send money in real-time. MoneyGram users can either go the actual website or use the App to send to eligible Visa-branded debit cards.

“The initial launch phase with MoneyGram has been a success. Based on customer feedback to date and seamless integration of Visa Direct into MoneyGram’s digital network, we look forward to continuing the rapid expansion of this service to new markets worldwide,” said Bill Sheley, SVP and Global Head of Visa Direct, Visa.

This expansion was launched soon after the Visa Direct’s successful launch in the United States where about half of the customers were new to the platform. Also, early signs show they were able to retain their customers rates and are “outperforming expectations.”

Ripple & MoneyGram

MoneyGram is also opening new corridors for Ripple’s XRP using On-Demand Liquidity (ODL) before 2019 ends.

In June this year, Ripple became a key partner of MoneyGram for cross border settlements using the digital asset by making an initial investment of $30 million in the company. Most recently, Ripple made yet another $20 million investment in MoneyGram —purchasing the firm’s newly issued equity at $4.10 per share which was much higher than its market valuation — completing its $50 million investment commitment to MoneyGram.

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Author: AnTy

MoneyGram Money Transfer Service Gets Investment from Ripple to Boost XRP Adoption

MoneyGram will use Ripple’s On-Demand Liquidity (ODL) solution in Australia, Europe and other important markets.

The US-based and blockchain company Ripple made a $20 million investment in the money transfer giant MoneyGram, announces a Ripple press release. This means Ripple owns a 15% stake that includes non-voting warrants in MoneyGram. This is what the CEO and Chairman of MoneyGram Alex Holmes had to say about the collaboration:

“Our partnership with Ripple is transformative for both the traditional money transfer and digital asset industry – for the first time ever, we’re settling currencies in seconds. This initial success encourages us to expedite expanding our use of On-Demand Liquidity.”

Both Parties Involved Are Sure to Win

Ripple started collaborating with MoneyGram back in 2018 when MoneyGram begun running its pilot program for testing the digital token XRP in order to reduce money transfer costs. In June 2019, the cryptocurrency giant Ripple bought $30 million worth of shares at MoneyGram and signed a 2-year partnership that requires the money transfer company to use XRP when making cross-border payments. When this happened, Garlinghouse said the deal is a crucial milestone in the cryptocurrency space because it helps Ripple prove how efficient the blockchain technology is, while MoneyGram is allowed to remain profitable in times of struggle.

New XRP Markets

The Ripple MoneyGram partnership has proven to be a success, seeing that now Ripple’s ODL solution is processing 10% of the MXN-USD Moneygram transactions. The liquidity index for XRP has gone over the Mexican exchange Bitso’s 6 million mark. With this new investment, MoneyGram will continue expanding to European and Australian markets and the adoption of XRP will be boosted. On November 23, XRP surpassed other major coins and set a new high for the daily transaction volume.

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Author: Oana Ularu

Ripple’s On-Demand Liquidity Accounts for 10% of MoneyGram Payments from the US and Mexico

  • Ripple previously purchased a large stake in MoneyGram before the implementation of xRapid.
  • Industry players want efficient and inexpensive options for their transactions.

Earlier in the summer of 2019, MoneyGram decided to implement xRapid, which is the On-Demand Liquidity product available through Ripple. Ripple had preceded the implementation by purchasing a large stake in MoneyGram, and recent comments by chief executive Alex Holmes reveal that remittances using ODL and XRP have already started being sent from Mexico. Of these transactions, 10% are using Ripple’s product.

Holmes made his remarks during Swell 2019, speaking with Ripple CEO Brad Garlinghouse. The former expressed how he feels about the present current remittance industry, as well as the way that MoneyGram contributes to the leveraging of blockchain and digital assets.

Through the last decade, additional competition in the industry has allowed remittance to evolve.

Holmes stated,

“What has amazed me the most is the amount of pressure that legacy players face. The fundamental challenge of moving money around the work is that there isn’t a lot of coordination between financial institutions and there should be more solutions to connect all these pieces. More and more companies are looking to make the economy move like it should.”

Holmes continued, saying that money will continue to move around the world, regardless of the challenges that it faces in political or economic struggles. He stated, “Every industry must be omnipresent and understand what their customers want.” Technology is one way that industry players are working to remedy these demands for low-cost, fast, and transparent transactions. Discussing the new product from Ripple, Holmes expressed that the project positions them “at the forefront of this technology.”

Brad Garlinghouse said, during an interview, that Holmes had previously complained that Ripple was moving too slowly with their progress on ODL. While both Ripple and MoneyGram were happy with the 10% use, both companies hope to expand the use of ODL to four global directions. The companies also use a cloud service to benefit customers with their transactions.

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Author: Krystle M

MoneyGram to Open New Corridors for Ripple’s XRP-using ODL Before the Year Ends

  • New corridors coming – MoneyGram reveals in its Q3 2019 earnings call
  • Ripple partnership makes MoneyGram the first company to utilize blockchain capabilities at scale
  • Ripple Partnership will be a competitive differentiator in the months and years ahead

Ripple’s latest partner MoneyGram in its Q3 2019 financial results revealed its expansion plan regarding Ripple.

As the report stated, it was the first company to utilize blockchain capabilities at scale through its strategic partnership with Ripple.

“Our third-quarter results reflect the continued transformation of our business as we increasingly focus on customer experience improvements, cross-border digital growth and industry-leading innovation through our strategic partnership with Ripple,”

said Alex Holmes Chairman and CEO.

The company reported a loss of $0.03 per share in Q3 of 2019 and its revenues fell 6% to $325 million, less than the expected $334 million. The company earned $285 million in revenue in money transfer while total digital transactions represented 20% of money transfer transactions.

Not just in its the US but non-US businesses of the company also recorded growth, shared Holmes.

He added:

“While the US market, which continues to be our primary challenge, showed signs of improvement on a sequential basis, we are very pleased that our non-US business achieved year-over-year growth for the quarter.”

Ripple Partnership will be a “Competitive Differentiator in the Months and Years Ahead”

Now, the company is planning to expand its partnership with Ripple, for which it utilizes its product On-Demand Liquidity (ODL), formerly known as xRapid that leverages digital assets XRP for transactions.

Asheesh Birla, SVP of Product Ripple shard this news on Twitter and what adds to this good news is these new corridors will be coming before 2019 ends which is in less than two months.

However, it came as no surprise, as last week during the 3rd annual DC Fintech Week, as we reported, Ripple CEO Brad Garlinghouse shared that MoneyGram CEO Holmes is actually upset with Ripple because they are “not moving fast enough.”

“He wants us to launch ODL, formerly knowns as Xrapid on more markets, more quickly because they’re having such a good experience with Mexico,”

he added.

As we have seen in Q4, XRP/MXN volume has been making new records, driven by MoneyGram which has been expecting to see the result and “influence in Q4.”

XRP meanwhile is trading at $0.289 with 24 hours loss of 1.24%, a per Coincodex.

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Author: AnTy

xRapid Update: Bitso Liquidity Index Breaks into an ATH as XRP/MXN Trading Gains Momentum

  • MoneyGram facilitating cross-border flows
  • Significant Volume means Ripple doesn’t have to incentivize
  • The Bitso Liquidity Index has broken into an all-time high (ATH).

Mexican licensed crypto exchange Bitso is seeing heightened activity when it comes to XRP/MXN trading. Though the volume in itself isn’t much, it is making progress and continuously growing.

In the past 24 hours, XRP/MXN registered the trading volume of $509,763, accounting for 0.05 percent of all the volume recorded in XRP markets, as per Coinmarketcap.

On Sept. 14, XRP/MXN trading volume surpassed BTC/MXN volume on Bitso. However, currently, while BTC/MXN accounts for more than half at 58.45% of all trading volume on Bitso, XRP/MXN only has about 32% share.

MoneyGram facilitating Cross-Border Flows

Just last month, Breanne Madigan, the head of Global Institutional Markets at Ripple and former Goldman Sachs executive shared despite the trading volume of the digital asset being down 65 percent, XRP/MXN has surged 25 percent.

Speaking at Global Blockchain Policy Forum organized by the OECD on Sept. 13 in Paris, Madigan shared how it works.

With one of its latest partner MoneyGram as an example, she detailed how MoneyGram help facilitate their cross-border flows for someone who lives in the US and wants to send Mexican pesos back to Mexico.

How it works is, through its partnership Ripple send MoneyGrams flow to one of the originating exchanges say Coinbase in the US where the US dollars get swapped to XRP and then they get sent to cross-border to a local exchange in Mexico say Bitso where it takes that XRP and swaps it into local Mexican pesos. The consumer then will receive Mexican pesos directly.

So, Ripple delivered significant cost savings to MoneyGram, a real value proposition to a company that’s affecting the end consumers because their fees will be lowered as a result.

As such as Ripple scale xRapid, its on-demand liquidity product, they’re launching new corridors.

Significant Volume Means Ripple Doesn’t Have to Incentivize

Madigan further states the way they’ve structured their contracts is in such a way that it leaves an opportunity for new liquidity participants to have the incentive to enter.

Since launching MoneyGram into that corridor, “a number of new liquidity participants are realizing there is a real arbitrage opportunity,” and Ripple doesn’t have to pay to incentivize people to make markets because there’s the significant volume going through that corridor.

On another note,

Madigan also talked about how they’ve seen global consensus from countries across the world including the UK, Australia, Malaysia, and Singapore noting that XRP is not a security but in fact a hybrid between a utility and settlement token.

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Author: AnTy