The partnership will see MoneyGram pilot the use of XRP through a new Ripple service, called xRapid, created to provide liquidity to financial institutions. They cited the low cost and speed of XRP transactions.
Moneygram will test the use of Ripple's cryptocurrency, XRP to see if it could be used to move funds in a faster and cheaper way than traditional methods. Its transaction fee, at just "fractions of a penny", is also comparable to bitcoin's $30 (roughly Rs. 1,900) per transaction fee. Similarly, the average transaction time for XRP is two to three seconds with other top digital assets ranging from 15 minutes to an hour, according to the release.More news: Democrats say Americans want Trump impeached - here's what new poll says
With offices in San Francisco, New York, London, Luxembourg, Mumbai, Singapore and Sydney, Ripple has more than 100 customers around the world.
MoneyGram says that blockchain, the technology that powers digital currencies, has the potential to revolutionize its current money transfer process, which requires pre-funded accounts to fulfill transfers.
"Every day blockchain technology is changing the norm and encouraging innovation".More news: Walmart to raise wages and give bonuses
Ripple, a fintech startup focused on providing blockchain solution for payments, has the backing of numerous global banks and financial institutions, including Standard Chartered and the Royal Bank of Canada.
The pilot project may not lead to MoneyGram adopting ripple, according to the statement. Ripple most recently announced it would be teaming up with Amex and Santander for a blockchain pilot to speed up payments between the USA and the United Kingdom.
The money transfer company clearly sees a lot of value in XRP...More news: 'Home and Away' Actress Jess Falkholt Passes Away
"We are excited about this pilot and a long-term strategic partnership with MoneyGram". Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them.