Ripple Scores A Win In MoneyGram
Ripple’s mission is to provide bank solutions allowing for faster payment settlement and lower foreign exchange fees. So they created the digital currency / ledger XRP.
XRP is the cryptocurrency used by the XRP ledger, which supports international currency exchange and remittances. All accounts on the network can send or receive XRP to/from each other, while XRP can be used to send underlying fiat currencies between two parties. XRP functions as a bridge currency in transactions involving different currencies such as US dollars, Japanese yen, Euros, Francs.
The last time I wrote about Ripple, was about four months ago. At that time, Ripple formed a partnership with the Bread wallet. Bread and their wallet is a free digital wallet app for bitcoin that places emphasis on the experience of storing cryptos in a digital wallet as simple as possible. With 2+million people have the wallet, in 170+ countries, supporting 14 languages, that just made XRP more accessible.
Little did I know back in October, the company behind the Bread wallet received a $750,000 investment from Ripple to boost the adoption of its XRP cryptocurrency. But Ripple has a pattern of investing in companies with the goal of putting XRP in more hands around the globe.
Back in January of 2018, Ripple partnered with MoneyGram, one of the world's largest money transfer companies to pilot XRP in their payment flows. That July, Ripple made some noise by acquiring a stake in MoneyGram. Reading between the lines, the pilot went very well because MoneyGram announced that they were adopting Ripple’s xRapid payment.
Dallas-based payment company MoneyGram, which received a $50 investment from Ripple in 2019, has just reported that the number of its digital transaction has grown 100 percent in May compared to the previous year in a press release.
Its stock (NASDAQ: MGI) pumped more than 16 percent on the news to an intraday high of $3.87.
Alex Holmes, the CEO of MoneyGram, says that the company aims to become a leader in digitalizing money transfers:
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.
But Ripple isn't just relying on the success of MoneyGram to get XRP in more hands. Navin Gupta, managing director for Ripple South Asia, North Africa, and the Middle East, claims that nearly 350 financial firms are using Ripple technology for payments. Ripple’s goal is to increase the number of partners to 400 by the end of 2020.
So where is the price of XRP headed next, despite the recent good news, the chart suggests more downside risks?
This post is my personal opinion. I’m not a financial advisor, this isn't financial advice. Do your own research before making investment decisions.
Posted Using LeoFinance
