MoneyGram Introduces Instant Remittance Product With Visa Without the Contributions of Ripple and XRP
MoneyGram has released another instant settlement service that uses Visa’s payment rails in moving money. However, despite that the firm uses Ripple’s XRP remittance platform, both Ripple and XRP are not included in the new service.
It is possible for the users of MoneyGram’s real-time remittance product (FastSend) to send money with the name and phone number of the recipient.
A press release stated that the service uses Visa Direct for the facilitation of fastest transaction times and the most seamless money transfer user experience.
The recipient is notified through a text after the money is sent. Recipients can instantly claim the money by logging in to the MoneyGram app and adding their debit card.
Each transaction carries a fee of $1.99 via FastSend and the maximum sum allowed per transaction is $10,000. At the moment, the service is available for transfers within the United States and remittances from the United States to Spain. MoneyGram is planning the addition of more markets in 2020.
Ripple’s investment in MoneyGram is valued at $50 million. MoneyGram is now using XRP in moving 10 percent of its average everyday volume between the United States and Mexico.
MoneyGram’s CEO, Alexander Holmes, said the optimization of immediate XRP remittances is among the firm’s long-term objectives as Ripple works on the expansion of the product to more regions worldwide.
He continued that MoneyGram is currently using XRP to move from dollars to pesos and the value such would bring in the longer term is interesting. He commented on perfecting the model:
But what I will say is that to the extent that we can perfect the model, that we can truly facilitate instant flow of funds, instant money movement with the data and allow a customer in county A to get money into country B seamlessly and efficiently, I think it’s what everyone is demanding.”
According to Holmes, it is now easier to move money through the new product collaboration with Visa.