MoneyGram to test Ripple's XRP token for international payments.

International money-remittance firm MoneyGram will partner with Ripple to test the RXP token for cross-border payments

A press release from MoneyGram released on Thursday says that it's XRP's low-cost per-transaction and speed which has attracted the company to seek the partnership.

MoneyGram will pilot the use of XRP, the native digital asset of the XRP Ledger, in payment flows through xRapid, Ripple's solution for on-demand liquidity. XRP remains the most efficient digital asset for payments with transaction fees at just fractions of a penny, compared to Bitcoin fees of about $30 per transaction. Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour.

Ripple chief executive Brad Garlinghouse said that MoneyGrams use of the XRP token means the company can directly transfer funds from one country to another without having to have preexisting accounts inside the country on the receiving end of a transfer.

"The inefficiencies of global payments don't just affect banks, they also affect institutions like MoneyGram. Money transfer companies are incredibly important because they help people get money to their friends and loved ones," said Brad Garlinghouse. "We are excited about this pilot and a long-term strategic partnership with MoneyGram. By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information."

The move will take MoneyGram, which is the second largest money transfer company in the world, to a new understanding of blockchain technology and has the potential to improve the efficiency of their global treasury operations and consumer experience
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The companies will also test Rother Ripple products, including xVia, according to the press release.

"Every day blockchain technology is changing the norm and encouraging innovation," Alex Holmes, Chief Executive Officer of MoneyGram, says. "Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid. We're hopeful it will increase efficiency and improve services to MoneyGram's customers."