Recent financial filings seen by Nairametrics revealed Ripple sent MoneyGram millions of dollars worth of XRP in Q3 2020.
MoneyGram collected $9.3 million in Q3 from the multi-billion dollar valued company for market development fees.
The market development fees are deposited in XRP, which MoneyGram says it immediately turns into cash.
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Highlights of Moneygram Q3 2020 results include
- Total revenue was $323.2 million, representing a slight increase on a reported basis or -1% on a constant currency basis
- Money transfer revenue was $297.6 million, up 5%, or 4% on a constant currency basis, driven by the strength of our digital business
- Investment revenue was $3.0 million for the quarter representing a decline of $10.4 million due to lower prevailing interest rates
- Total operating expenses of $286.6 million, improved $19.2 million or 6%
- Transaction and Operations Support expenses decreased $31.5 million or 56% which included: Agile management of expenses through the pandemic as the Company continues to benefit from its Digital Transformation.
- $8.9 million net benefits from Ripple market development fees of $9.3 million, partially offset by related transaction and trading expenses of $0.4 million
- The Company recorded $6.3 million in foreign exchange gains primarily related to currency movements during the pandemic.
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What you should know; Recall Nairametrics some months ago broke the news on MoneyGram receiving $20 million in funding from Ripple to enhance its payment solutions through a partnership system with many leading financial institutions.
- The funding by Ripple completes its $50 million offerings for about 15% stake in MoneyGram to run its experimental program for testing the effectiveness of the digital token XRP.
- This deal would definitely give MoneyGram’s arch-rival, Western Union, a run for its money. Reports from different private sources, seen by Nairametrics show that Western Union is now bent on buying MoneyGram to scale on its robust growth experienced lately.
READ: Minimising foreign exchange risks for your transfers
MoneyGram is a global leader in cross-border P2P payments and money transfers. Its consumer-centric capabilities enable family and friends to quickly and affordably send money in more than 200 countries and territories, with 81 now digitally enabled.
