Alexander Holmes, MoneyGram chairman and chief executive, revealed during a Q1 2020 earnings call that it was a “quiet quarter” regarding the company’s partnership with blockchain payment firm Ripple (XRP).
During June 2019, Ripple first announced its “strategic partnership” with the money transfer company listed in Nasdaq. The initial term of the partnership was set at two years, with Ripple providing an exchange-equity capital commitment of up to $50 million over 24 months.
The announcement was also intended to see Ripple act as the “key partner for cross-border payment and foreign exchange settlement using digital assets” for MoneyGram.
Ripple Partnership ‘Quiet’ During Q1 for MoneyGram
Despite Ripple’s high expectations for the partnership, MoneyGram’s CEO stated that Q1 2020 was “quiet” with respect to Ripple’s services.
“I would say it was a little bit of a relatively quiet quarter, in the sense of really pushing anything particularly new into the market or expanding the service.”
“We did a lot of that in the back half of last year, and really got going on a number of new corridors for that service,” Holmes noted.
Despite expressing satisfaction with the deal so far, comments by Holmes indicate that Ripple has yet to solidify its services or target market:
“We continue to flex with them as they continue to expand the service and move some things around, and really figure out what they want, the product to look and feel like, and how they want to take that to various markets. So I think it’ll change over time. I think the results of what we’re doing will vary by quarter and by month.”
“But, yes, it’s been a good partnership, and definitely pleased with what we’ve been doing,” he added.
Looking ahead, Holmes expects the partnership to generate revenue from experiments into “new services and new corridors”.
Holmes’ comments come soon after Robert Lisv, CEO of major U.S.-Latin American remittance provider and Ripple partner, Intermex, revealed that the partnership of the firms will not see Ripple’s technology used in its core markets.
“So, you won’t really see us leveraging Ripple in our core markets. I think it will bring us more growth in newer markets in places where we’re exploring going into ancillary products,” he stated during Intermex’s March earnings call.