Legacy remittance provider MoneyGram will form a strategic partnership with distributed ledger fintech Ripple to pilot XRP, the cryptocurrency used on Ripple’s network, in MoneyGram's payment flows, as well as some other Ripple offerings.
The firms didn’t specify how many of MoneyGram’s transactions will be included in the test, or whether the partnership will become a permanent part of MoneyGram’s business, according to Bloomberg, but both parties are optimistic it’ll improve services.
It’s worth noting that this news comes just after rumors that Western Union, MoneyGram’s biggest competitor, would forge a similar relationship.
The move comes as legacy remittance players seek out ways to better compete with digital upstarts. Digital-first remittance players are still much smaller than dominant legacy providers, but they’re growing more quickly, and could represent a substantial threat down the line.
BI Intelligence analyst Jaime Toplin has the full story.