Source: Travis Wolfe
- MoneyGram partners with Ripple through its ODL clients Frente Corretora and Travelex.
- MoneyGram and Ripple ended a direct partnership back in 2021 after Ripple ran into troubles with the SEC.
Ripple has clinched a new partnership with cross-border peer-to-peer payment and money transfer company MoneyGram.
Tehol Beddict, an XRP community member, first pointed out the partnership on Twitter. He notes that MoneyGram launched the MoneyGram Online (MGO) website in Brazil in partnership with local online payments platform Frente Corretora.
Frente Corretora will enable MGO to allow Brazilians to send and receive remittances to their accounts over MoneyGram. Meanwhile, Frente Corretora is a partner of Travelex, Ripple’s major XRP On-Demand Liquidity (ODL) partner bank in Brazil.
MoneyGram launches MoneyGram Online in Brazil via Frente Corretora – “developed in partnership with #Ripple.” They are partnered with Travelex – Ripple’s major #XRP ODL partner Bank in Brazil.
MoneyGram/Ripple did say “committed to revisiting our relationship on the future” 😛 pic.twitter.com/T1upPgB35j
— Tehol_Beddict_XRP (@TeholBeddictXRP) December 21, 2022
MoneyGram stated in a press release that the move is part of efforts to expand the geographical presence of MGO. Alex Holmes, MoneyGram’s chairman and CEO, added that the company is confident that the platform will capture growth from new customer segments. He said:
“We are extremely proud of the immersive online platform we’ve built for customers around the world, and our sustained digital growth globally demonstrates that consumers truly value our leading user experience,” he said.
MoneyGram adds that the Brazil remittance market is a growth opportunity for its operation in Latin America. GMO’s Brazil launch extends MoneyGram’s presence in Brazil, a country in which it already has over 1,000 retail locations.
Also Read: Ripple conquers new billion-$-market with new partnership – Will it drive XRP price to $5?
Ripple and MoneyGram’s shared mutual past.
Aside from MoneyGram’s connection to Travelex, Ripple and the payment company also have a shared past of partnerships. The two companies were partners up until 2021 when Ripple’s troubles with the SEC escalated.
During the period of the partnership, Ripple poured large investments into MoneyGram, buying its stocks. In turn, MoneyGram also used Ripple’s services to settle millions worth of USD remittances via XRP and planned to start using its ODL technology.
Following the fallout of the partnership, Ripple has since dumped its holdings of MoneyGram’s shares. MoneyGram moved on to negotiation to sell itself to Ripple’s competitor, Stellar. However, the negotiations fell through.
The two did not rule out the possibility of revisiting their partnership in the future. There is the possibility that the two U.S.-based payment giants may ally again once Ripple’s SEC case is settled. Other financial market key players have also stated that they are waiting on regulatory clarity on XRP before moving on with their adoption of Ripple payment solutions. Among these is banking giant JP Morgan.
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