- Ripple Partner MoneyGram recorded a 70% increase in online transactions in December 2019, compared to the previous year.
- This is due to the diversification of the company’s products and channels to meet the needs of the 3.2 billion smartphone users worldwide.
The number of online transactions outside the USA during the holiday season increased by 120% compared to the previous year. Ripple Partner MoneyGram is a money transfer company that offers payment services in several countries worldwide. The company made significant progress in 2019, as the reported transaction growth shows. Alex Holmes, Chairman and CEO of the company, says:
The success of our mobile app throughout the year, and especially during this holiday season, demonstrates the value consumers place not only on our user experience, but also on our global distribution network.
Investments in online channel responsible for growth
One of the reasons why MoneyGram has grown so much is the recent investment in modernizing the online business channel. With the number of smartphone users growing worldwide, the company has invested heavily in improving its online services. This includes the redesign of the mobile app, which has been offering a completely new design for users since 2018 and has already achieved 1.6 million downloads.
In addition, the company has also redesigned its website, launched Visa Direct, enabled real-time international payments with VISA direct, improved access to the digital world in some countries and expanded its customer loyalty program beyond the United States.
Although MoneyGram already offers payment services in more than 60 countries around the world, Kamila Chytil, chief operating officer and head of the company’s digital efforts, promises to make further digital improvements to reach more customers worldwide. MoneyGram recorded 70% more transactions in 2019 than it did in 2018, Chytil describes:
Our app is enabling us to reach a new customer segment, and we’re continuing to invest in the digital business to bring our leading capabilities to more consumers across the globe.
Ripple and MoneyGram appear bullish for 2020
MoneyGram has achieved several milestones in recent years. By working with Ripple, the company can save a lot of money, as the On-Demand Liquidity (ODL) software solution can save up to 75% of transaction fees. In addition, Ripple recently completed a $50 million investment in the company, giving it 10% of all MoneyGram equity.
Both companies are working together to build a more robust platform for international money transfers. They have recently announced that 4 additional payment corridors will be opened for ODL in the 1st quarter of 2020. In the long term, Ripple could also benefit from MoneyGram’s strong growth if additional payment corridors are developed.
Already, 10% of all transactions from Mexico to the United States are processed using the ODL payment solution, which Ripple provides to further improve its remittance services. Ripple has more than 300 partners and more than 500 employees worldwide and intends to further expand its own presence in Asia.
The price of XRP is also currently proving to be bullish. This has risen by more than 9% within the last 24 hours and stands at 0.2159 USD at the time of writing. Whether the long-awaited trend reversal comes, however, remains to be seen for the time being.