Luther Maday, the Head of Fintech and Innovation at MoneyGram International (MGI), appreciates Stellar Lumens (XLM) as the most suitable network for the company’s latest cross-border payments solution. Maday emphasized that Stellar was specifically designed to facilitate cross-border transactions, setting it apart from other blockchains. The Stellar network offers significantly reduced transaction fees. Additionally, the collaboration with USD Coin (USDC), a fully collateralized digital dollar stablecoin supported by cash and short-term U.S. treasuries, positions Stellar as the preferred option for various initiatives.
It’s worth noting that MoneyGram and the Stellar blockchain have previously collaborated. In 2021, they worked together to facilitate monetary transactions using the USDC stablecoin. MoneyGram International is widely recognized as a prominent player in the payment industry. It has evolved into a global financial technology enterprise with a large customer base worldwide. MoneyGram Access is a result of MGI’s pioneering efforts in Web 3.0 and advanced payment technologies, which are crucial for its ongoing evolution.
MoneyGram Access utilizes Stellar technology to improve global access to financial services and digital assets. The service allows eligible users to convert cash to cryptocurrency and vice versa through on- and off-ramps. The integration of MGI with the Stellar protocol (SEP-24) enables direct access to the network and ecosystem, creating an opportunity for MoneyGram to expand its customer base by integrating Stellar-powered wallets and applications with MoneyGram Access. Customers of MoneyGram Access now have more transactional options in partnership with USDC. They can transfer funds to wallets worldwide or choose to hold the asset as a safeguard against market fluctuations. If needed, users can withdraw their USDC at a MoneyGram branch and obtain their local currency.
“There are multiple blockchains out there, but #Stellar was built with cross-border payments in mind. Transaction fees on Stellar are so minimal that there's negligible cost for quickly moving an asset across Stellar." – says @luthermaday of @MoneyGram
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— Stellar (@StellarOrg) June 13, 2023
Integrated wallets and applications connected to MoneyGram Access can directly access MoneyGram’s extensive network of retail kiosks and locations. This allows Stellar users to deposit or withdraw funds using USDC without requiring a bank account. MoneyGram’s decision to employ a stablecoin aims to serve the unbanked and underbanked populations, considering the volatility of cryptocurrencies. By selecting USDC on Stellar, MGI combines the advantages of a thoroughly scrutinized stablecoin backed by fiat with a network optimized for quick, simple, and cost-effective transactions.
Recently, Kado Money, an onboarding provider and Web 3.0 infrastructure, partnered with Stellar to expand its support for USDC. In the coming years, Stellar wallets will offer Kado Money customers worldwide launch services covering over 160 nations.
