- Ripple’s partner, MoneyGram launched the FastSend payment sending service.
- Despite its partnership with Ripple, MoneyGram decided to launch the product on the VISA network.
In a press release, Ripple partner MoneyGram announced the introduction of its new fast payment service, FastSend. The new service will allow consumers to send money quickly and easily through a phone number. Users will be able to use a third party’s phone number to make transactions via the MoneyGram’s website and application.
MoneyGram prefers VISA over Ripple
The new MoneyGram service, FastSend, will be supported by VISA’s network. In the press release, Ripple’s partner states:
The new service, supported by the Visa Direct rails, enables the industry’s fastest transaction times and the most seamless money transfer user experience. In this revolutionary new product, customers can send and receive money in just a couple of clicks.
According to the statement, users will only have to enter the app or website and write down the phone number of the recipient of the transfer. Immediately the recipient will get a text message notifying them of the funds availability. The receiver must only login to MoneyGram’s website or app, through the referred channels, and use their debit card to withdraw the funds.
MoneyGram also disclosed that the service will allow the transfer to be made without knowing the receiver’s banking information. The user only needs to send a text message. MoneyGram also highlighted the accessibility of the service which will cost only $1.99 per transaction from a debit card. The service will have a limit amount of $10,000 that can be sent per transaction.
MoneyGram CEO Alex Holmes said the new Visa web-based service will make sending money easier. Holmes hopes the new service will allow MoneyGram to stay at the forefront of the evolution of digital P2P payments. The deal has attracted attention because of the cooperation between MoneyGram and Ripple, a company that specializes in fast payment services based on blockchain technology.
The companies established a partnership that has brought them benefits. By using Ripple’s financial products, MoneyGram has seen a 70% increase in all its transactions during 2019. However, MoneyGram has decided not to use Ripple’s services or XRP for the launch of this new service.
MoneyGram’s product, FastSend, seems to be suitable to exploit Ripple’s services. The company provides fast, cross-border payments. In addition, Ripple made a $50 million investment in MoneyGram and further cooperation between the companies was expected.
MoneyGram COO Kamila Chytil said the cooperation with Visa would accelerate the company’s growth. FastSend is available for users in the United States and for transactions between the United States and Spain. At this time, there are no known statements from a Ripple representative nor is it known whether this new service will affect the relationship between the two companies.
"Sending money is now as easy as sending a text," said @walexholmes, Chairman & CEO. "FastSend builds on the success of our extremely popular mobile app and will further our leading position in the evolution of digital P2P payments." https://t.co/xcxXqmwVEN pic.twitter.com/JIeL5AtVhH
— MoneyGram (@MoneyGram) February 11, 2020
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