Ripple SVP Praises Prominent MoneyGram Partnership as a Global Payment Service Use Case
Ripple Inc. has signed a two year strategic partnership with MoneyGram, with a financial clause of $50 million USD stake buyout. Kahina Van Dyke spoke to PYMNTS earlier this week on the partnership and its benefits to Ripple Inc.
“[Blockchain and crypto powered payments are] going to be the start of a massive efficiency in a system that just hasn’t had a lot of other options.” @kahinavandyke shares her thoughts on the democratization of cross-border payments and more. https://t.co/99sKmj7Com via @pymnts
— Ripple (@Ripple) July 1, 2019
The past month has been one of the busiest in the cryptocurrency and blockchain industry since the boom period in 2017. Facebook launched its Calibra wallet and associate Libra cryptocurrency bringing about conflicting opinions from both the regulators and the crypto community as well. Furthermore, the cameras have shifted the little remaining attention to Bitcoin’s soaring price, as the rest of the projects have been left with little mainstream media attention.
Ripple Inc.’s recent partnership with MoneyGram is a casualty of the Facebook – Bitcoin success despite the gigantic implications it has to traditional payment systems. Ripple Inc.’s SVP of business and corporate development, Kahina Van Dyke, held a discussion earlier in the week, praising the partnership, and stating it is the start of
“a massive efficiency in a system that just hasn’t had a lot of other options.”
The Inefficiencies of the Traditional System
The current money transfer systems and cross-border B2B payments are slow, expensive and marked by friction. However, we have learned to live with the inefficiencies of the systems given that everyone uses it. Kahina opened up on the inefficient traditional system saying,
“We just kind of dealt with a system that we knew was inefficient but frustrating […] We know the future is coming, and it’s a transitionary period from the old inefficient infrastructure.”
Ripple Inc. – MoneyGram Partnership set to bring Efficient Financial Transfers
The two companies have been known to be in talks for the past year to introduce Ripple Technologies to international payment transfers. Ripple Inc. acquired about 10% of the stake in MoneyGram for $50 million USD earlier in June to form a partnership with one of the largest money payment companies in the world. The two-year strategic partnership will integrate Ripple’s xRapid product and leverage the XRP cryptocurrency for foreign exchange settlements in MoneyGram’s cross-border payments.
Van Dyke explains that xRapid platform will be used to settle financial transactions across the world. The process will reduce the time of transaction from days to less than a minute – a huge advantage over relying on a promissory note underpinned by the correspondent banking system.
On the future of the MoneyGram partnership, Van Dyke hopes the platform will allow customers and business to participate easily in global commerce as the system becomes more efficient, fast and cheaper.