MoneyGram records nearly $9 million in profit from partnership with Ripple

  • MoneyGram records a total profit of $323 million of which $8.9 million comes from profit with a partnership with Ripple.
  • XRP showed a 1.88% drop in 24 hours, following the trend in the altcoin market.

Ripple‘s partner, MoneyGram, has revealed the results of its third quarter of operations in 2020. MoneyGram CEO and Chairman, Alex Holmes, has called this period an “incredible performance” for the digital payments company. According to the report, the company achieved significant growth. Holmes said:

Our customer-centric strategy and growing active customer base helped deliver year-over-year money transfer revenue growth for the quarter, while the strength of our Adjusted EBITDA and cash flow demonstrate how our investments to build a scalable infrastructure are paying off. It’s exciting to see the successful execution of our digital transformation be a catalyst for sustainable and profitable growth.

Ripple pays “market development fees” to MoneyGram

According to the report, MoneyGram’s fastest-growing product is the MGO (MoneyGram’s direct-to-consumer channel). With 111% growth in transactions in one year and 114% growth in profits. Cross-border transactions grew 176% with a 174% increase in revenue in the same period. At the same time, the company records a total profit of $323.2 million.

Earnings from MoneyGram transfers stand at $297 million. Overall, operating expenses were reduced by 56%, in part because of the $8.9 million MoneyGram received as a total benefit from Ripple’s market development share.

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As reported by CNF, Ripple paid a so-called “market development fee” to MoneyGram since 2019. According to Ripple CEO Brad Garlinghouse, the fees are a method of “incentivizing” companies to use Ripple’s products. Payments, as reported by a MoneyGram employee, are made with digital asset XRP digital.

The MoneyGram employee added that the company sells the asset “as fast as it can”. Currently, XRP is trading at price with a 1.88% drop in the last 24 hours. In the weekly and monthly chart, the digital asset shows losses of 7.32% and 2.11% respectively.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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