According to a report by Cointelegraph, Moneygram has announced the real-time money transfer service FastSend. This service will make it possible to send money directly to a phone number via a mobile application or a special website. Allegedly, however, no ripple technology is to be used.
Moneygram’s boss, Kamila Chytil, has told Cointelegraph that FastSend uses Visa’s Direct Original Credit transaction to transfer funds to bank accounts via debit card deposits.
Blockchain still highly relevant
Chytil argued that block chain technology is not necessarily suitable for this process, but that it is used in other applications:
“Currently, Moneygam uses Ripples On Demand Liquidity product, which allows Moneygam to trade XRP foreign exchange at the corporate level. It is a back-end treasury function that is not intended for end users. The technology helps solve the most expensive and time-consuming aspect of the current process by reducing the amount of money the company needs to park globally, which ultimately reduces the need for working capital.“
According to Kamila Chytil, new applications for blockchain continue to be eagerly sought. She also expressed the company’s belief that DLTs will be the future of cross-border payments.
Moneygram and Ripple entered into an expected 2-year partnership last summer, as reported. Together they want to develop solutions for cross-border payments. Moneygram has been active in this area since 1940. The company would like to upgrade its technology and together with Ripple test its xRapid technology. xRapid uses Ripple’s XRP Coin.
xRapid should significantly reduce the transaction speed and costs of international payments. The deal included the purchase of 8% to 10% of Moneygram’s shares (at that time approximately $30 million) and the provision of a further approximately $20 million during the years of cooperation.
Since the announcement, Moneygram’s share price has risen from approximately $1.5 to a high of approximately $6.11 in September 2019. In the meantime, it has dropped significantly again and is currently trading at $2.6.
Since then, the ripple price has not been able to continue its extraordinary rallies of previous years. It has more or less moved with the crypto market and is now down around 10%. As a result, it has lost much of the gains it made last week. However, the last two days were a bloodbath for all crypto currencies. Ripple is not the worst off by a long shot.