The deal between MoneyGram and Ripple made headlines last year, due to what it meant for the crypto world. Well, a traditional financial company, allied at the time with what could be the main Blockchain company in the world. However, it seems that this agreement was only one of many options for MoneyGram. Since, it has been announced that it will launch a product similar to the one they planned to create with Ripple, but with Visa support.
Immediate payments in Blockchain
To understand the importance of agreements with MoneyGram, we must first understand the situation of the international financial system. And it is that, at the moment, in spite of all the advances that the world market has made from the Internet, sending money across borders is still a very complicated process.
This is due to the number of intermediaries that are required to make a cross-border transfer. Including banks, lawyers and other institutions, each charging a commission for their services. Making the sending of money a process that can take several days to execute, and with high commissions.
A situation that in a world like ours, where events happen at high speed, ends up being an obstacle for companies and investors. That is why, for years, attempts have been made to achieve a fast and simple process for cross-border transfers.
In this effort, Blockchain technology has taken a leading place. Well, until now blockchains are one of the safest methods for sending money across borders. In a simple, immediate and especially cheap way. Ripple and its currency being the XRP, at the head of this effort to this day.
The MoneyGram Agreements
Therefore, it was no surprise to anyone, that the MoneyGram company signed an agreement with Ripple last year. With the aim of using the platform created by this company, to be able to send immediate remittances to any part of the world.
However, MoneyGram has recently announced the launch of FastSend, a service for the immediate sending of money across borders, without the participation of Ripple. Visa being the company chosen as a partner by MoneyGram for the launch of its product. With which your customers can send money immediately, with the use of a telephone number.
Although Ripple would not be involved in this new service of the company, according to the Director of Operations of MoneyGram, the company would continue to work extensively with the Blockchain company in other areas. Considering also, the use of blockchains as a means to protect the data of the platform users.
«Today, MoneyGram uses Ripple’s liquidity product on demand, which allows MoneyGram to trade currencies at the corporate level using XRP. It is a fund treasury function that does not face consumers. The technology is helping to solve the most expensive and time-consuming aspect of the current process, reducing the amount of money the company needs to reach the entire world, which will eventually reduce working capital needs«Commented Director Kamila Chytil.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.