February 17, 2020
MoneyGram is one of Western Union’s competitors and a major partner of Ripple. The company competes for leadership in the international securities transactions sector. Ripple even invested millions in MoneyGram, but the company just announced a partnership for a new product … with Visa.
The international trading giant has announced a new service that allows the transfer of values in real time. But the new partnership does not include Blockchain technologies, let alone Ripple, Moneygram’s longtime partner.
According to CoinTelegraph the new service is called FastSend and allows customers to send money to a phone number through a website or a mobile application.
Kamila Chytil, COO at MoneyGram, explained to the website that FastSend uses Visa’s Direct Original Credit Transaction to transfer funds between banks through credit card deposits.
The new product drew the attention of those who follow the partnership between Ripple and MoneyGram, because Ripple invested heavily in the transfer company so that it could create solutions that would use Ripple’s decentralized products and the XRP cryptocurrency.
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Ripple is working to become a common solution for transferring values cheaper and faster than on traditional platforms. Interestingly, before being partners, Ripple and MoneyGram were competitors.
Did MoneyGram abandon Ripple?
It is possible to find people commenting that this is a sign that MoneyGram “laughed in the face” of Ripple when using a competitor of the platform in its new product. But Kamila Chytil ensured that decentralized and blockchain solutions are still present at the company and that they are widely used on the company’s backend.
“Today MoneyGram is using Ripple’s On Demand Liquidity, which allows our company to transact at the corporate level using XRP. It is a back-end financial function that is not ideal for consumers. Technology is helping us to solve most of the costly and time-consuming process problems, reducing the amount of money the company needs to be around the world, which eventually reduces the necessary movement capital. ”
MoneyGram’s COO broadly praised the Distributed Ledger technology and added that the company believes that Blockchain will be the future of cross-border payments worldwide.
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