MoneyGram share price rises after Ripple (XRP) pilot announced

Ripple to fall to $1.25

Shares of the firm were up around 15 per cent pre-market in NY after it said it will pilot Ripple for payments. The company says its transaction fees are much lower than those for traditional money transfer and competing crytpocurrencies like bitcoin. "By using a digital asset like XRP that ‎settles in three seconds or less, our clients can move money as quickly as ‎information."‎.

MoneyGram's CEO Alex Holmes added he hopes the partnership will "increase efficiency and improve services" to its customers faster and he believes blockchain technology overall is "changing the norm and encouraging innovation".

"The inefficiencies of global payments don't just affect banks, they also affect institutions like MoneyGram".

According to a press release, MoneyGram will test Ripple's xRapid service due to its claimed speed and cost efficiency.

Brad Garlinghouse, the CEO of Ripple stated that this is a strategic partnership and would help users reduce the cost of money transfer. Earlier, Ripple had commented that they have been teaming up with three of the world's biggest money transfer companies - however no names were announced. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid.

Ripple created XRP, a virtual currency used on its network, to allow banks to send client money from Paris to Tokyo, for example, in a matter of minutes rather than days.

Ripple is a cryptocurrency (XRP) issued by a blockchain startup of the same name and has enjoyed an astonishing rise in 2018 following in the footsteps of bitcoin. The two agreed upon expanding their digital payment methods globally, but the US had blocked it, sending Moneygram shares down over 9 percent. Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them.

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