Moneygram is one of the most popular cross-border remittance service providers in India. The cross-border transaction service provider recently joined hands with Ripple in order to enhance their cross-border remittance services using RippleNet technology. As per the latest developments, Moneygram is looking to expand its services in India in partnership with EbixCash.
EbixCash is a financial subsidiary of Ebix, Inc, which is a global supplier for on-demand software and E-commerce services and offers their services to numerous businesses which range from e-learning to healthcare, financial and insurance industries.
The new partnership would help Moneygram get access to EbixCash’s 320,000 distribution outlets in India spread across over 4,000 cities and more than 75,000 rural areas. MoneyGram is expecting remittance volumes in upwards of $3 billion, while EbixCash is expecting to generate $20 to $35 million in annual revenue because of the recent partnership. Grant Lines, MoneyGram Chief Revenue Officer, added,
“India remains the world’s top recipient of remittances, and we’re excited to better serve this critical market through our partnership with EbixCash, a leading brand with an approximate 80% share of locations in the country.”
MoneyGram is turning out to be one of the most important global partners for Ripple as the firm recently made a $50 million investment into the cross-border remittance service provider and now owns 10% stake in the company. Ripple might make further investment in MoneyGram given its reach around the globe and might increase their stake to 15%. On the other hand, MoneyGram has also increased its use of XRP tokens for liquidations since the partnership was struck in mid-2019.
Ripple Becoming The Choice of Technology For Remittance Services
Ripple the parent company behind issuing XRP has managed to establish itself as a remittance banking technology service provider and has partnered with hundreds of central and commercial banks. XRP, which has held onto its 3rd position by market cap hasn’t done much in terms of market price and has remained below the $0.30 mark throughout 2019.
Many in the decentralized space has accused Ripple of dumping XRP tokens on investors and also for manipulating its price. However, lately, Ripple top brigade has been seen pushing XRP as a liquidity token rather than a form of currency. But, the RippleNet technology for sure has helped the firm avoid the XRP related controversies for quite some time now.
Alex Holmes, chairman and CEO of MoneyGram said that they were quite excited to diversify their operations in a country like India with such a large market. He explained,
“Partnering with the largest financial exchange in [India] is an important milestone, and we are excited to enable EbixCash to plug into the MoneyGram platform to access our customer-centric capabilities and services.”
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