The money transfer giant MoneyGram, launched FastSend, a new service that would allow real-time money sending, but will not use cryptocurrency XRP or Ripple’s technology
The blockchain company Ripple is one of its largest partners as it has $50 million investments in MoneyGram.
FastSend is a new service that allows its customers to send money to a phone number through a dedicated website or mobile application in real time.
Blockchain Is No Longer Needed For Real-Time Settlements
Kamila Chytil, MoneyGram Chief Operating Officer clarified that FastSend uses the Direct Original Credit Transfer from Visa to transfer funds via debit card deposit to bank accounts.
The dedicated website and app uses micro-services based on an open source cloud, when DLT is not active. Chytil also pointed out that while Ripple is not involved in this operation, the MoneyGram makes extensive use of blockchain in other areas:
“Today, MoneyGram is utilizing Ripple’s On Demand Liquidity product which allows MoneyGram to trade FX at a corporate level using XRP. It’s a back-end treasury function that’s not consumer facing. The technology is helping to solve the most expensive and time consuming aspect of the current process by reducing the amount of money the company needs to park around the world, which will eventually reduce working capital needs.”
Furthermore, Chytil said that MoneyGram is also evaluating other use cases “where blockchain could help solve data privacy and regulatory obligations through distributed ledger technology.” In general, she spoke highly about DLT and cryptocurrencies, noting that the company believes that blockchain is the future of global cross-border payments and transfer of money.
Unlike traditional markets, Chytil lauded the cryptocurrency market for being active at all times, and the potential of crypto-assets to shorten the currency’s delivery times. Ultimately, she said MoneyGram is looking at several use cases to optimize the use of Ripple’s services and is integrating with the latest version of Ripple’s software suite to provide cash-out service to all network users.
As a provider of DLT services, Ripple is seeing increased adoption among financial institutions. Bangladesh-based Bank Asia, holds more than $3.4 billion in assets, entered Ripple’s blockchain-based financial services network this month.