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.
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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.