Ripple Partner in remittance service, MoneyGram, has just sealed a partnership deal to extend it new bank deposit service to the Ukraine, a country said to be the largest recipient of remittance in Europe and Central Asia.
MoneyGram is collaborating Ukrainian Bank Industrialbank to expand its account deposit service to the country, a release has said.
The second largest remittance firm aims at offering recipients in the country a faster and cheaper transfer service.
The leading global cross-border P2P payments and money transfers company is undergoing global transformation, the Chairman and Chief Executive Officer at MoneyGram Alex Holmes has said, adding that the latest partnership shows the company’s dedication to upgrade and expand its service in key market areas.
“As the company evolves to meet the changing needs of consumers around the world, we’re focused on accelerating digital growth through the expansion of account deposit capabilities to new markets,” Holmes said.
“Our new partnership with Industrialbank in Ukraine is one of a number of recent partnership signings that highlight our ongoing strategic investments to upgrade and expand our service in key receive markets”
The latest development made MoneyGram the first remittance company to allow people transfer funds directly into the receiver’s bank account in the country.
The MoneyGram account deposit service allows receiver to get the transferred fund in their account on the same day if transferred within Ukrainian business hours, else the next business day without any back-end fees and low, locked-in exchange rates.
Already MoneyGram account deposit service is available at 400 banks across the globe, making it easy for customers to make transfer by entering required sender and receiver’s information at the point of sale and then select the bank deposit option.
The Chairman of the Board of Industrialbank, Mykhailo Bukreev, said he’s grateful to the team of both companies for implementing such a great innovation.
“Industrialbank is one of the leading banks in the Ukraine. Its success on the foreign markets and focus on improving customer services for the Ukrainian market have led to providing the new account deposit product for Ukraine, which has no equivalent in the CIS,” Bukreev said.
World Banks says Ukraine received a record value of $14 billion in remittance in 2018, representing 17% value rise to what was recorded in 2017. Ukraine also represents the largest remittance recipient in Europe and Central Asia, thanks to the reviewed methodology for calculating incoming remittances and increase in demand for migrant workers in neighboring countries.
Ukraine, as the largest remittance recipient in the region, would now have a more fitting and easy way to access funds and greater financial inclusion via the new service introduced by the Ripple Partner.
Ripple Partnered MoneyGram To Enhance Usage Of XRP
In 2019, Ripple signed a 2 years deal with MoneyGram to enhance the usage of XRP for remittance. Ripple paid $50 million to secure 9.95% of MoneyGram’s common stock at the rate of $4.10 per share.
Via the deal, MoneyGram agreed to use Ripple’s On-Demand Liquidity product for 10% of money it transfers between the United States and Mexico. Since then, Ripple’s ODL on the Mexican remittance corridor has been witnessing impressive growth.
