MoneyGram announced on Feb 12, that it has launched a new P2P product that will allow real-time settlements across the globe. The tech remittance giant dubbed this service ‘FastSend’ and was rolled in the U.S and Spain. It is however notable that MoneyGram did not use blockchain tech in developing FastSend despite its close partnership with Ripple.
The new service by MoneyGram seeks to improve the firm’s efficiency in their core business as more competitors with DLT built platforms join this industry. According to MoneyGram’s CEO and Chairman, Alex Holmes, users will be able to send money from anywhere in the world with just a few clicks;
“With the launch of the new FastSend service, sending money is now as easy as sending a text. FastSend builds on the success of our extremely popular mobile app and will further MoneyGram’s leading position in the evolution of digital P2P payments.”
FastSend is web and app designed so that all one needs to do is login and initiate the process of sending money to a recipient. Instead of Ripple, MoneyGram partnered with Visa to leverage the Visa direct product as a debit card to deposit and withdraw funds sent via FastSend. One of its main cost and liquidity competitive edge is a cheap fee of $1.99 and a large limit of $10,000 per transaction.
MoneyGram Snubs Ripple’s Blockchain Tech
As mentioned earlier, MoneyGram did not go with Ripple’s popular blockchain based remittance solutions but opted for a cloud built open-source micro service. The company’s COO, Kamila Chytil, however highlighted that they use Ripple’s tech in an institutional level to save to time and expenses;
“Today, MoneyGram is utilizing Ripple’s On Demand Liquidity product which allows MoneyGram to trade FX at a corporate level using XRP. It’s a back-end treasury function that’s not consumer facing.”
Chytil further added that MoneyGram is looking into blockchain use cases in improving data privacy and keeping up with compliance practices. As it stands, the company is set to offer a cash out facility to all its network users through Ripple’s latest service suite. She was also optimistic about the crypto market noting that it’s a mile ahead of the traditional ecosystem in payments and settlements globally. Early this month, RippleNet added a Bangladesh headquartered bank as a new user; this financial services market maker has a reported AUM of $3.4 billion.