According to a publication by Ripple insights on November 8, MoneyGram chairman and CEO Alex Holmes, at Ripple’s Swell 2019 conference in Singapore, said that MoneyGram used Ripple payment solution called On-Demand Liquidity in about 10 percent of its transaction made between US and Mexico corridor and planned to expand into four more corridors by the end of this year.
During the conference, in a conversation with the Ripple’s CEO Brad Garlinghouse, he also discussed the current landscape of the cross-border payment industry, benefits of using ODL, and how blockchain and digital assets are being leveraged within MoneyGram.
According to Alex Holmes, over the last 10 years, the remittance industry has changed a lot due to increased competition in the space. He stated:
“What has amazed me the most is the amount of pressure that legacy players face. The fundamental challenge of moving money around the world is that there isn’t a lot of coordination between financial institutions and there should be more solutions to connect all of these pieces. More and more companies are looking to make the economy move like it should.
Despite any challenges in today’s landscape, whether political or economic, money continues to move and every industry must be omnipresent and understand what their customers want.”
Ripple’s On-Demand Liquidity payment solution facilitates global payments with less cost and offers real-time transactions. ODL allows to use XRP to bridge two currencies in under three seconds, ensuring payments are quickly sent and received in local currency on either side of a transaction.
MoneyGram’s global liquidity and settlement engine enables their customers to send money in over 200 countries and territories. It announced its plans to implement Ripple’s On-Demand Liquidity solution in its money transfer business in June. Also, Ripple invested $50 million in MoneyGram to accelerate XRP adoption.
Alex Holmes, about ODL, said:
“What I love about ODL is that we’re completely at the forefront of this technology. We are able to settle billions of dollars in seconds. The magic really comes from pairing MoneyGram transactions with Ripple’s ODL.”
He further said that to meet customers demands for instant, transparent and low-cost payments, companies were using emerging technologies. MoneyGram also had also an innovation lab to test new technologies and bring real-time application to their operations.
“We’re migrating our legacy systems to the cloud and looking at how we can use blockchain distributed ledger technology to improve our core systems.”