Alex Holmes, the CEO of MoneyGram, recently spoke on the Ripple-organized Swell conference, revealing great plans that the two companies have for the near future. MoneyGram is already known for its use of Ripple’s technology for making near-instant international payments.
Now, according to Holmes’ statement, the two are planning an expansion of XRP-based ODL (On-Demand-Liquidity), which will bring the service to four additional corridors.
MoneyGram’s experience with Ripple tech
As mentioned, the payment giant’s CEO attended Ripple’s Swell event, during which he was interviewed about the company and its experience in dealing with Ripple technology. He commented on MoneyGram’s experience with xRapid by saying that around 10% of MoneyGram’s payments sent to Mexico are now going through Ripple’s payment product and that it is going ‘extremely well.’
Furthermore, Holmes announced that the company is expanding to four additional corridors and that they are starting to scale. He expects a lot of positive development in the following months. While he did not reveal how much money is actually being sent, he did praise the ability to know how many pesos were moved, at what time, and what rate. Furthermore, the transactions are being processed almost instantly, arriving in Mexico in real-time, which he calls ‘pretty phenomenal.’
Ripple’s ODL works by relying on partnering crypto exchanges to receive and accept fiat payments sent by banks and other financial institutions. The exchanges would ten send the amount of XRP, equivalent to the amount of fiat that they had received. Upon arriving to the location, the XRP is once again converted into fiat.
The whole process is designed to last for only a few minutes, while the sent assets exist in the form of XRP for only a few seconds.
According to Alex Holmes, this solution can be used for moving massive amounts of money, including billions of dollars, almost instantly.
MoneyGram’s partnership with Ripple paying off
MoneyGram had partnered up with Ripple relatively recently, in June of this year. Back then, Ripple acquired 8-10% of the company with a $30 million-large investment. Since then, it has set a great example of how a legacy platform can benefit from working with a fintech to increase the speed of its transactions, and make payments more convenient through the use of crypto.
MoneyGram also revealed that it is connected to over two billion accounts around the world, including mobile wallets, bank accounts, virtual accounts, and alike.