MoneyGram Receives $9 million as Market Development Fee From Ripple
MoneyGram, Ripple’s partner, has reported the fiscal 2020 third-quarter results, which reflect exceptional performance aided by the adoption of RippleNet, which facilitates cross-border payment and Forex settlement.
Alex Holmes, MoneyGram CEO and Chairman has referred this period an “incredible performance” for the digital payments enterprise. As per the report, the company recorded considerable growth.
Our customer-centric strategy and growing active customer base helped deliver year-over-year money transfer revenue growth for the quarter, while the strength of our Adjusted EBITDA and cash flow demonstrate how our investments to build a scalable infrastructure are paying off. It’s exciting to see the successful execution of our digital transformation be a catalyst for sustainable and profitable growth.
MoneyGram’s direct-to-consumer channel (MGO), as per the report, is the rapidly growing product of MoneyGram. The company recorded 114% increase in profits and 111% rise in transactions in a year. Furthermore, cross-border transactions increased 176%, reflecting a 174% rise in revenue during the same period.
Overall profit was $323.20 million, while earnings from MoneyGram transfers stood at $297 million. As a whole, operating expenses declined 56%, partially due to the $8.80 million generated by MoneyGram as an outcome of increase in Ripple’s market share.
Notably, MoneyGram received a “market development fee” from Ripple since 2019. As per Brad Garlinghouse, Ripple CEO, the fees encourages companies to use Ripple’s payment network and products, which function using XRP crypto as the base.
The MoneyGram spokesperson stated that the company liquidates the asset “as fast as it can.” At the time of writing this article, XRP was trading at $0.2387, reflecting a gain of 1.1% in the past 24 hours. Over the past week and month, the crypto has lost 6.32% and 1.6%, respectively.