MoneyGram receives USD 16.6 mln in XRP incentives from Ripple in Q1 2020

Wednesday 6 May 2020 04:46 CET | News

Global money services company MoneyGram has received incentives from Ripple in the first quarter of 2020, amounting to a total of USD 16.6 million, according to The Block Crypto.

Ripple pays MoneyGram incentives for using its RippleNet solution. Nevertheless, MoneyGram categorises these payouts as a ‘contra expense’ and as a market development fee based on the volume of foreign exchange that the company transacts on Ripple's platform.

These incentives are paid in the form of XRP, as MoneyGram noted earlier in 2020. The first quarter compensation is higher than the combined USD 11.3 million MoneyGram received during Q3 and Q4 of 2019, the online publication added. While MoneyGram receives incentives in XRP, it does not hold the digital asset for long, as the company sells the XRP as soon as it receives it.

Ripple and MoneyGram partnered in June 2019. As part of the agreement, Ripple invested a total of USD 50 million into the remittance company. Their agreement is scheduled to expire on July 1, 2023. Overall, the CEO of MoneyGram has declared that the company is ‘pleased with the Ripple.

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Keywords: XRP, MoneyGram, RippleNet, Ripple, remittances, cross border payments, money transfers
Categories: DeFi & Crypto & Web3
Countries: World
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DeFi & Crypto & Web3

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