Ripple invests $30M in MoneyGram, enters partnership on foreign exchange settlement

June 18, 2019

MoneyGram International Inc. said it entered into a strategic partnership with Ripple, a provider of enterprise-level blockchain solutions, which will take a $30 million stake in MoneyGram and offer its xRapid product for use in foreign exchange settlement as part of the money transfer company’s cross-border payments business.

Under the partnership, which will have an initial term of two years, Ripple will be MoneyGram’s key partner for cross-border settlement using digital assets, according to a company release.

Ripple paid an average of $4.10 per share in newly issued MoneyGram common stock and may fund up to an additional $20 million in common stock or warrants going forward, according to the companies, based on the same $4.10 per share price.

"I am extremely excited about Ripple’s investment in MoneyGram and the related strategic partnership,"Alex Holmes, chairman and CEO of MoneyGram, said in the release. "As the payments industry evolves, we are focused on continuing to improve our platform and utilizing the best technology as part of our overall settlement process."

MoneyGram said it currently relies on traditional foreign exchange markets to meet its settlement obligations, which require advance purchases of most currencies. The partnership will allow MoneyGram to settle key currencies and match the timing of funding with its settlement requirements, a move that will cut operating costs, improve cash flow and boost earnings.

Topics: Mobile Payments, Money Transfer / P2P

Companies: MoneyGram

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