By Shelly Melancon (Switzerland)
MoneyGram International has unveiled a partnership with Stellar Development Foundation to allow customers to send and convert USDC directly to fiat currencies. The partnership will also enable customers to convert from fiat currencies to USD Coin. According to the announcement, MoneyGram will integrate support for USDC transactions by connecting crypto wallets to the Stellar Network to enable users to access its retail features.
The Partnership will Facilitate Local Fiat Withdrawals
With the partnership, MoneyGram will allow withdrawals into fiat monies using the USDC token and activate account funding via “near-instant backend settlement.” The United Bank of Texas will act as the intermediary bank in the transactions according to the dictates of the law.
CEO of MoneyGram Alex Holmes expressed excitement with the partnership and the potential great things the two parties can achieve. Holmes acknowledges the prominence of cryptos and digital assets alongside the potentials of stablecoins as a tool to facilitate cross-border transactions. The Chairman said he remains optimistic about the turnout of stablecoins.
MoneyGram’s partnership with Stellar Network will kickstart soon in selected jurisdictions for now, with plans of an international rollout expected in 2022. Meanwhile, Denelle Dixon of the Stellar Development Foundation disclosed that the new product feature will allow fiat users to convert their cash into USDC and back to fiat again seamlessly and affordably. In addition, the users will for the first time, have access to effortless digital payment services.
Also read:MoneyGram’s collaboration with Stellar comes after the financial service company introduced a feature that enabled customers to change cryptos to cash via its PoS retail outlets in the United States in May. MoneyGram partnered with BTC ATM operator Coinme to roll out the feature. The feature will allow users to buy Bitcoin and other cryptos.
In 2019, it collaborated with Ripple Labs to implement cross-border payments using XRP. Unfortunately, the deal went sideways when the SEC identified XRP as security. MoneyGram halted support for Ripple in March.
Crypto adoption among reputable payment services firms is growing rapidly. Since the start of the year, Visa, PayPal, and MasterCard have all integrated crypto payment services into their platforms. PayPal in March allowed its U.S. users to transact in Bitcoin on the various online merchants available on the platform.
MoneyGram’s moves to integrate crypto show how the financial world has evolved digitally, concerning payments and converting cash to cryptos and vice versa. It continues to indicate how fintech and payment service companies can take advantage of the growing cryptocurrency to improve transaction speed.
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