MoneyGram Expecting xRapid’s Influence in Q4 as Ripple Investors Look for an XRP Price Catalyst
- Ripple is MoneyGram’s key partner for cross border settlement using crypto assets
- xRapid didn’t have much of a material impact on Q3
- Q4 will see the Influence for which MoneyGram is super excited
MoneyGram, the second-largest money transfer company in the world recently revealed that it has already started using XRP-powered cross-border payment platform, xRapid.
This news came just a few weeks after MoneyGram announced it would be using the platform and received an initial investment of $30 million from Ripple. At the time, the price of its shares more than doubled overnight, rising 150%.
Ripple is MoneyGram’s key partner for cross border settlement using digital assets
During the Q2 2019 results Conference Call on August 2, the transcript shared by Seeking Alpha, Alex Holmes, Chairman and Chief Executive Officer of MoneyGram shared his “excitement” to announce that Ripple has become their “key partner for cross border settlement using digital assets” and the company started “executing trade earlier this week.”
“All signs point to this being a tremendously beneficial relationship for all parties involved. We're literally settling currencies in second, and to quote my friend Larry, this is really cool,” Holmes added.
xRapid didn’t have much of a material impact on Q3
As for the impact of utilizing xRapid and its cost-benefit, Larry Angelilli, the Chief Financial Officer at MoneyGram, shared that they didn’t see “really much of a material impact on Q3.”
From price, performance, transparency, and improvements in liquidity perspective, he said, “at this point, it's kind of second to none.” Further talking about the speed aspect of xRapid, Holmes explains it is “almost like a consumer FX platform,” where money can be transferred in a minute.
Q4 will see the Influence for which MoneyGram is Super Excited
He illustrated how they moved money in Mexico in under a minute but though they are on a ramp, they are not going to max out Ripple’s system.
“I think in the fourth quarter, we'll start to see some impact. I think due to the kind of confidentiality and the unique nature of what we're doing. I don't think we can really describe, at this point, what the P&L impact is. But I would just say that we're expecting it to influence Q4.”
The idea is to understand the capacity and what they can and should be doing as an organization when it comes to distributed ledger technology and crypto assets.
“I think we're actually probably underappreciated for the value that we can bring from an on-demand liquidity settlement perspective to a number different aspects of that growing industry. So we're, I don't know, super excited about I guess is probably how I’d phrase it.”