Ripple continues to make inroads in the money transfer industry. The company has now completed its final investment in MoneyGram equity.
The partnership between Ripple and MoneyGram has been well-documented over the past year.
Strengthening Ties With MoneyGram
The remittance giant will have Ripple purchase company equity at specific intervals.
The final step of this particular process has now been completed.
Earlier this week, Ripple purchased the final $20m in MoneyGram equity that was still outstanding.
This equity was purchased at a price of $4.1 per share.
For those unaware, MoneyGram’s share market price is just $3.
By paying this premium, Ripple confirms it will continue to work with the remittance provider and is strengthening its own portfolio in the process.
Over the past few months, MoneyGram has begun experimenting with Ripple’s technology.
As a result, they note real-time payments in specific payment corridors, with more to follow suit.
At this time, roughly 10% of MoneyGram’s Mexican Peso FX trading volume passes through Ripple’s On-Demand Liquidity.
Four other corridors are currently being explored, including locations in Europe and Australia.
Bringing more efficient money transfers to consumers is just one part of the equation.
The company hopes to eventually pass on those savings to its customers, allowing for cheaper money transfers.
Ripple’s total investment in MoneyGram is valued at $50m.
This gives the company just under 10% of MoneyGram’s outstanding common stocks.
Additionally, Ripple’s investment buys them 15% on a fully-diluted basis.
The success of this venture may not have any market impact on the XRP asset that is traded on cryptocurrency exchanges.
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