The second largest money transfer system in the world, MoneyGram, began using the xRapid product from California-based Fintech startup Ripple to make cross-border payments. This was announced by MoneyGram CEO Alex Holmes in a corporate call for the second quarter.

Q2 2019 MGI Earnings Webcast_vFinal by BlockchainJournal on Scribd

So, the first transactions through xRapid took place last week, but the company did not disclose data on current payment volumes.

“Ripple will be our key partner for cross-border payments using digital assets ,” Holmes said.

Note that the xRapid product is based on the XRP token and allows you to send funds in one currency and instantly calculate the recipient in another currency without the need for constant preliminary purchases. In MoneyGram added that cooperation with Ripple can bring additional profit to the company by reducing costs.

Holmes confirmed that Fintech-start-up also acquired MoneyGram shares at $ 4.10 at a price of $ 1.45 in the stock market. He did not disclose the exact amount of investment, but earlier media reported that it was about $ 30 million and an obligation to purchase shares for another $ 20 million as needed.

Recall that in the community to deal with MoneyGram reacted with skepticism, as the company a lot of debt and its existence in the commercial context, raises some concerns.

However, it is worth pointing out that the system serves several million people in more than 200 countries.

Ripple and MoneyGram concluded their first agreement in early 2018.

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