- Moneygram has been working closely with Ripple over the past 12 months in order to make its cross-border payments faster and more streamlined.
- The payments giant has previously tried out Ripple’s xRapid platform so as to facilitate voluminous monetary tx’s between various European nations.
As per a recent interview with MoneyGram’s Youri Bebic, the finance guru was quoted as saying that digital currencies are “rapidly changing the face of the global finance arena”. Not only that, in his opinion, altcoins are also redefining the way in which money changes hands across international borders.
In this regard, it should be highlighted that late last year, MoneyGram entered into a partnership with Ripple in order to reduce its native tx costs (as well as increase its payment processing speeds) — through the use of Ripple’s ‘XRP token’.
Remittance Payments Don't Require Movement of Physical Assets
Bebic told researchers working for the IRPAAI ( Institute for Robotic Process Automation and AI) that his company had been testing out various crypto enabled technologies over the past couple of years. Additionally, he proclaimed that digital currencies have the potential to dominate the “global finance arena” within the next 5-10 years.
In relation to this entire matter, Bibic was further quoted as saying:
“We did a proof of concept with one cryptocurrency. We made a press release so I can answer that. That was with Ripple, where we are trying to see if we can use cryptocurrency for liquidity in the markets. Because the big secret with money transfers is the money doesn’t move. The money’s already there. We pre-fund pretty much in bank accounts all over the world and then we do value transfer. But if I were to send money from here to Mexico and literally, physically move the money at that time, it would take a lot of time.”
Lastly, we need to highlight that in the past, Youri has time and again gone on record to state that since international remittances don't really involve the actual movement of physical assets, processing charges associated with such tx’s should be maintained at a bare minimum by various banks and financial institutions.
Cryptos Could Transform Cross-Border Payments
When talking about international payments, we need to understand that when money is sent to a different country, the payment processor mediating the entire transaction usually pre-funds its destination bank account so as to make the entire process completely streamlined for itself.
In Bebic’s opinion, cryptocurrencies can change the way in which the global remittance market works since they allow for cross-border value transfers to take place in a near instant fashion (without the need of pre-funded bank accounts.)