Cory Johnson who is the former chief market executive of ripple says that the new Q2 conference of MoneyGram shows the fact that the management of MoneyGram is so much committed to the use of digital assets of XRP.
He also said that the company is also sensing the importance of blockchain for their business.
As he states
Finally had a chance to read the MoneyGram Q2 conference call transcript and was truly surprised how openly committed management is to Ripple and XRP. I expected coy. What I got was a sense that they understand how blockchain WILL, not ‘might’, change their business – and soon.
It is unveiled by MoneyGram through a conference call that the XRP-powered-cross payment solution has got much importance in their business and is now flowing up.
Larry Angelilli who is the chief financial officer of MoneyGram states that as soon as the technology becomes the central part of their business, the xRapid will start affecting the bottom line in the Q4 of the current year.
We’ve been ramping [xRapid] starting with some pretty low levels. I don’t foresee really much of a material impact on Q3. We’re live. We’re doing stuff. We did move money to Mexico in a minute 13 seconds. But I think we’re going to ramp. We’re not going to be maxing out or stressing their system. And so it will build gradually. I think in the fourth quarter, we’ll start to see some impact. I think due to the kind of confidentiality and the unique nature of what we’re doing, and I don’t think we can really describe at this point what the P&L impact is, but I would just say that we’re expecting it to influence Q4.
The statement of Larry is pointed out by Johnson and we can predict from the statement that the company is expecting too much from xRapid to decrease the costs of the company as the quarter starts in October.
Think about that. He’s saying operating expenses ($149 million last quarter) will noticeably decrease as soon as the quarter starting in October. That’s bold.
The partnership between MoneyGram and Ripple was finalized in the month of July. According to the agreement, the shares of thirty million dollars in the company were bought by the Ripple and the company also allowed Ripple to buy another share of $20 million in the next two years.