Remittance payment platform MoneyGram received $11.3 million in benefits from Ripple in 2019 for its use of RippleNet.
According to filings with the U.S. Securities and Exchange Commission (SEC), MoneyGram received $2.4 million from Ripple in Q3 2019 and $8.9 million during the final quarter of the year. A subsequent press release issued by the remittance company on Feb. 24 characterized the payment as a “benefit” from RippleLabs, purportedly for its use of the RippleNet money transfer service.
The release states,
MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities.
In an earnings call on Tuesday, MoneyGram chief financial officer Lawrence Angelilli told shareholders,
We've discussed in the past MoneyGram receives a market development fee based on the volume of foreign exchange that we transact on Ripple's platform.
In a previous earnings call held last November, Angelilli explained that MoneyGram is compensated for “developing and bringing liquidity” to RippleNet markets.
MoneyGram CEO Alex Holmes mentioned during the earnings call that he was pleased with the company’s overall relationship with Ripple.
He said,
I couldn't be more pleased with the partnership and the success we've had with Ripple. Today our trading volume continues to grow and we're partnering to expand the service to more corridors.
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