MoneyGram Launches Online Remittance Platform With Ripple Partner In Brazil
MoneyGram rolls out an online remittance platform in Brazil. Ripple links lead to speculation that the payment giant may be using Ripple ODL.
MoneyGram has launched an online platform in Brazil, per a press release from the company yesterday.
MoneyGram Online (MGO) will allow Brazilian customers to send remittances globally, MoneyGram said in the press release. Customers will pay no transaction fees for using the service, which promises to deliver at “near real-time” speed.
“This is a significant growth opportunity for MoneyGram to capture market share in a country with one of the largest populations in the world,” Alex Holmes, MoneyGram CEO, said. “As we approach the start of the new year, we’re set up for success.”
MoneyGram disclosed that the service is made possible through a partnership with Frente Corretora, a Brazilian FinTech company. Notably, Frente Corretora is also a Ripple partner, per a release from Ripple in August. Consequently, XRP holders are excited that the service could use Ripple’s On-Demand Liquidity (ODL) service, which uses XRP as a bridge currency.
However, there is no explicit mention of this in the report.
Notably, if true, it would not be the first time for MoneyGram to use Ripple’s ODL service. Both entered into a partnership in 2019 that saw Ripple buy a $30 million stake in the company allowing MoneyGram to use Ripple’s ODL service at the time called xRapid for cross-border payments.
However, the partnership ended in March 2021, not long after the US Securities and Exchange Commission sued Ripple for allegedly offering and selling an unregistered security. While they specified no reason for the breakup, Garlinghouse, in a statement at the time, asserted that both parties were committed to forging new partnerships in the future.
Notably, Ripple’s ODL service has expanded to nearly 40 payout markets, representing about 90% of the foreign exchange markets, facilitating cheap and near-instant cross-border payments for its partners.