Ripple has already invested $50 million in MoneyGram. Since the partnership between the two companies in 2019, MoneyGram has been using the ODL platform. This layer of the network allows cross-border payments to be made using XRP.
According to the US international money transfer giant, Ripple’s reward is a “market development fee”. The amount varies according to the volume generated by MoneyGram.
In the first quarter of 2020, MoneyGram received $16.6 million in XRP. For the second half of 2019, it was $11.3 million. In total, MoneyGram has received $31.3 million in XRP awards since the beginning of 2020. This brings Ripple’s total awards to MoneyGram to $43 million. This money is intended to provide the ODL platform with liquidity.
This is a good deal for MoneyGram. The money transfer company announces that it made a profit of $8.8 million in the second quarter alone in 2020.