According to filings through the Securities and Exchange Commission (SEC), money transmission network MoneyGram has gained over $11 million from the blockchain-based payments firm Ripple Labs.
In a press release by MoneyGram, the company stated it had received funds from Ripple divided over two quarters: in the fourth quarter, $8.9 million, and $2.4 million in the third, totaling $11.3 million. Its revenue for Q4 was reported to be $323.7 million.
“MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities.”
Nothing in the SEC filings state what Ripple’s investment will be used for. However, MoneyGram’s agreement with Ripple has previously allowed it to use XRP and its blockchain product ODL(On-Demand liquidity) to facilitate cross-border payments.
“[MoneyGram] is compensated by Ripple for developing and bringing liquidity to foreign exchange markets, facilitated by Ripple’s blockchain, and providing a reliable level of foreign exchange trading activity. The Company expects that this partnership, at scale, will reduce our working capital needs and generate additional earnings and cash flows.”
MoneyGram already had financial ties to Ripple. The two firms announced a partnership back in January 2018 for MoneyGram to integrate XRP into its payment system.
In June 2019, the two entered into a partnership to collaborate on cross-border payments and foreign exchange settlements with digital assets. Ripple followed through with a $50 million deficit investment, completed that November.
Despite this close working relationship, not all money transfer methods are being handled by Ripple. Most recently, MoneyGram unveiled FastSend, a service allowing real time money sending based on Visa.