MoneyGram launches FastSend, but elected for Visa payment rail over XRP
The legacy remittance firm announced the launch of its FastSend service that enables consumers to use MoneyGram's website or app to initiate a transfer and enter a receiver's name and phone number.
The service, which was developed as part of MoneyGram's strategic partnership with Visa and uses Visa Direct's rails, results in the receiver getting a text that they have funds available, at which point they can log in to MoneyGram, add their debit card, and have the funds added to their account "within minutes."
FastSend has a $10,000 maximum per transaction and charges a $1.99 fee. It's currently available for transfers in the US and for sends from the US to Spain — Spain saw an estimated $922 million in inflows from the United States in 2017, the most recent data available — and MoneyGram plans to add more markets throughout 2020.
This is very strange because Ripple purchased a $50 million stake in MoneyGram in June of 2019, with the hope it would start using XRP for cross-border transactions and remittance. Apparently they even already started to use Ripple tech. Last August, MoneyGram CEO Alex Holmes said, during an earnings call, MoneyGram is making transactions on the xRapid platform. He even stated at the time, XRP had shown a number of benefits, especially with the speed of XRapid transactions.
At the time I even said this was one of the dumbest purchases Brad and Co. had made. I could go on a rant about this but to keep it short their are reasons why Netflix never bought Blockbuster but partnered with STARZ instead. I still think Ripple and the Stellar Foundation should partner, let Ripple handle the business end and Stellar handle the ecosystem and technology. It makes more sense as time goes on.