Moneygram, - the world's second largest money transfer company (after Western Union) - submitted its annual report to the U.S. Securities and Exchange Commission, declaring a profit of $ 11,3 million after its alliance with Ripple, which made it possible to implement the ODL solution.
Cost and time reduction for Moneygram
Moneygram explained that the use of Ripple's tools, including its ODL, has significantly reduced the costs and delivery times for cross-border transfers, as well as XRP - which allows the exchange of US dollars - has reduced costs and capital needs, generated profits and allowed additional cash flows.
The Ripple team has also implemented some of its proposals in the Moneygram system to reduce costs, fees, compliance measures and fraud prevention, working with independent contractors and consultants.
On November 25, Ripple invested $ 50 million in MoneyGram, its largest investment in a company so far, in exchange for shares. This partnership agreement gave them a 10% stake in the quotation, but without a seat on the board.
Leader in the cross-border payments market
Ripple is making its way into the Asian market thanks to a partnership with Deemoney, a company specializing in digital cross-border money transfers, which will process payments made from South Korea, Indonesia, Singapore, Israel, the Middle East and the Gulf among others.
All this by implementing technological and financial improvements that make the system more functional when processing payments.
The National Bank of Fujairah PJSC (NBF), which has 18 branches in the United Arab Emirates (UAE), has announced that it intends to use the RippleNet platform to offer its customers a cheaper and more transparent way to send funds to India, reducing the transaction times and making payments more traceable, thanks to this blockchain-based solution.
Banks are changing their minds about cryptocurrencies
The volatility that cryptocurrencies have experienced due to the Covid-19 pandemic is changing the opinion that many central banks had on them, highlighting the number of potential uses they can provide for the global economic recovery.
Vince Cook, CEO of the National Bank of Fujairah, told the media how banks should cope in these difficult times. “In a fast moving environment, banks must act with agility and constantly seek new and advanced ways to serve their customers.
The key to a better future
Digitization remains a key catalyst for change and, as a bank that puts customer satisfaction first, we understand the importance of leveraging blockchain technology to offer our customers smooth and frictionless experiences. "
The use of Ripple's technology has proven to be successful, not only in money transfer services like Moneygram but also in the banks themselves. Its platform is used by Santander to develop a payment corridor in Latin America which has also proven to be very efficient and compatible with the bank's expectations.
Maybe banks and crypto companies can work together after all ...