Ripple, the blockchain-based payments network had joined hands with money transfer giant Moneygram back in June 2019. The deal saw Moneygram using Ripple’s on-demand liquidity (ODL) cross-border payments product in their daily operations through RippleNet. Six months later at the Swell 2019 conference organized by Ripple, Moneygram CEO Alex Holmes announced that it is moving 10% of its total transaction volume between the United States and Mexico using Ripple’s ODL.
While conversing with Ripple CEO Brad Garlinghouse, Holmes mentioned how blockchain and cryptocurrencies are being leveraged within Moneygram. He also focused on the changing landscape of the remittance industry and mentioned the benefits of using ODL in cross-border payments.
He talked about how the remittance industry has evolved over the years saying:
“What has amazed me the most is the amount of pressure that legacy players face. The fundamental challenge of moving money around the world is that there isn’t a lot of coordination between financial institutions and there should be more solutions to connect all of these pieces. More and more companies are looking to make the economy move like it should, despite any challenges in today’s landscape, whether political or economic, money continues to move and every industry must be omnipresent and understand what their customers want.”
Modern day enterprises are leveraging technology to meet customer demands for instant, transparent and low-cost payments. Moneygram has started its own innovation lab that experiments with emerging technologies and implements them in real world scenarios. Speaking of ODL, Holmes said:
“What I love about ODL is that we’re completely at the forefront of this technology … We’re able to settle billions of dollars in seconds. The magic really comes from pairing MoneyGram transactions with Ripple’s ODL.”
MoneyGram currently services 200 countries and territories, with close to $600 billion processed within the global remittance market. Its core strength lies in its global liquidity and settlement engine that enables customers to make cross-border payments. Implementing Ripple’s ODL has further added to its strengths.
Holmes made it clear that Moneygram wants to spread its wings further using ODL on RippleNet.