Profits from Partnerships: The MoneyGram and Ripple Connection
MoneyGram has been riding high on its partnership with Ripple Labs, pulling in over $11 million from the blockchain-based payment titan, according to documents filed with the Securities and Exchange Commission (SEC). This infusion of cash comes at a time when many are asking: can money transfer networks coexist with cryptocurrencies? Spoiler alert: they can, and they do, with style.
Breaking Down the Numbers
In a recent press release, MoneyGram disclosed that it received a substantial $8.9 million in the fourth quarter, followed by $2.4 million in the third quarter, bringing the grand total to an eye-catching $11.3 million. To put this in perspective, MoneyGram reported a revenue of $323.7 million for Q4, which means their Ripple earnings are a juicy slice of an even larger pie.
The Ripple Effect: What’s the Money for?
Of course, curiosity gets the better of us, and the question lingers: what’s the plan for this influx of cash? The SEC filings are mum on specifics, but we know that this partnership has enabled MoneyGram to utilize Ripple’s digital currency, XRP, alongside its On-Demand Liquidity (ODL) service for facilitating cross-border transactions. A MoneyGram spokesperson mentioned, “[MoneyGram] is compensated by Ripple for developing and bringing liquidity to foreign exchange markets.” Speaking in the financial world feels much like a pick-up game of sports: you keep playing as long as there’s a good balance of offense and defense.
The Long History of MoneyGram and Ripple
MoneyGram and Ripple are no strangers to collaborations; their relationship has roots that stretch back to January 2018. That’s when they initially joined forces to introduce XRP into MoneyGram’s operations. Fast forward to June 2019, where their friendship deepened with Ripple pouring $50 million into MoneyGram, aiming to tackle the challenges of cross-border payments and tackle digital currency settlements. MoneyGram is clearly committed to making the most of their blockchain buddy.
Exploring Alternatives: What About FastSend?
But hold the phone! Not everything is smooth sailing on the Ripple sea of cash. MoneyGram has also rolled out FastSend, a service that allows real-time money transfers using the Visa network, showing that they can juggle multiple partnerships at once. It seems MoneyGram has decided to play the field, dating both Visa and Ripple. As the age-old adage goes, “don’t put all your eggs in one basket”… or in this case, don’t limit your partnerships to just one blockchain.
Future Outlook: What Lies Ahead?
The future looks intriguing for both MoneyGram and Ripple. With MoneyGram as the pioneer money transfer service embracing blockchain technology, we can only imagine what innovative solutions lie around the corner. Who knows—maybe they’ll start offering a “send money with one click” button that launches you into the blockchain universe! For now, it appears that the dynamic duo of MoneyGram and Ripple is far from finished changing the way we send money across borders.
