In its recent report on Q1, the money transfer company MoneyGram informed that Ripple (XRP) has paid $16.6 million incentive to the company. The incentives in Q1 are more than the collective amount given in Q3 and Q4 last year.
Ripple Invested $55 Million So far
Ripple is a blockchain firm known for providing instant and cheap payment solutions across the borders. Ripple made signed a strategic partnership with the Texas-based firm in June 2019, and it invested a total of $55 million in MoneyGram so far. These incentives are paid by the company for deploying the RippleNet solution in MoneyGram’s operations and the remittance firm called these incentives as “contra expense rather than revenue” and as a ”market development fee based on the volume of foreign exchange that we transact on Ripple’s platform.”
The increase in payouts shows that the remittance platform is deploying Ripple’s payment solution on large scale which lead both companies to tie in a successful knot. Alexander Holmes, the CEO of the MoneyGram, said,” We continue to be extremely pleased with the Ripple partnership.”
“From a new service, I would say it was a little bit of a relatively quiet quarter, in the sense of really pushing anything, particularly new into the market or expanding of the service. We did a lot of that in the back half of last year, and really got going on a number of new corridors for that service. We also have a variety of new services in the pipeline and things that we’ll be rolling out, and expanding with later this year,” Holmes added.
MoneyGram accepted recently that these incentive payouts are given in XRP, the native currency of the Ripple platform. “The Company is compensated by Ripple in XRP for developing and bringing liquidity to foreign exchange markets, facilitated by the ODL [Ripple’s On-Demand Liquidity] platform, and providing a reliable level of foreign exchange trading activity. We refer to this compensation as market development fees,” claimed MoneyGram.
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