MoneyGram is making a whole lot of income from the partnership it signed with Ripple, a report by the remittance firm has shown.
In a Q3 report by MoneyGram, a huge profit of $323 million was made, and Ripple’s cross-border payment solution contributed $8.9 million to the success.
The inference is that the partnership between the two firms is generating a great deal of profit for the second-largest cross-border payment network, and this, no doubt signals that more benefits are not far insight for the two companies.
The “incredible performance” made by MoneyGram in 2020 took the company’s CEO Alex Holmes aback, and it indicates that the two companies are going to have a mutual benefit as time goes on.
Holmes, in his remark, noted that MoneyGram’s customer-centric ideas created are behind the upsurge in revenue. The firm places the revenue solely on its decision to satisfy its customers and also achieve an unmatched digital transformation, which has helped bolstered links with countries and financial institutions across the world.
These, the CEO, believed are behind the “sustainable and profitable growth” seen in the Q3.
The report shared among investors and customers shows how MoneyGram has fared in the last few months and brings to the public glare that the director-to-customer channel is MoneyGram’s fastest developing area.
The company saw a whopping 114% profits increase and 111% growth in transactions within a year. In total, MoneyGram saw a profit of $323.2 million.
Ripple and MoneyGram announced a partnership deal in 2019. The strategic deal, according to Ripple and MoneyGram, is expected to last for 2 years and geared towards increasing the use of XRP token, a crypto asset used by financial institutions to make cross country payments.
While the general crypto ecosystem has not had a fear share of the partnership, as there was a wide expectation it would increase global adoption of cryptocurrency. MoneyGram has not shied away from telling the world it makes use of XRP token, but does not keep the digital asset owing to regulatory uncertainties and laws.
When Ripple partnered with MoneyGram, Holmes, shared the good news among customers and investors, saying the remittance firm now makes use of “Ripple xRapid,” a solution that is now referred to as On-Demand Liquidity (ODL).
During the announcement, Holmes did declare that the firm now settles payment within seconds using XRP for transactions.
At that time, a report had quoted Ripple’s head of global institutional markets team, Breanne M. Madigan, has saying that the deal was paying off for XRP in terms of trading volume.
Despite the evolving benefits of the partnership, embattled crypto enthusiast and software guru, John McAfee had insinuated that the deal was nothing but efforts in futility.
Ripple CEO Brad Garlinghouse mentioned at some point that it took the company a year to convince MoneyGram about the awesomeness of XRP, but McAfee was hellbent on his statement that MoneyGram does not use XRP.