As reported in a recently published press release, former Ripple partner MoneyGram and one of Ripple's current partners, Frente Corretora, have joined forces to launch a new remittance solution in Brazil with zero fees for users.
MoneyGram and Ripple partner collaborating
The new service is dubbed MoneyGram Online (MGO), and it allows customers to transfer money from Brazil to any nook on the globe to friends and family members at a pace close to real time.
Funds sent through MGO can be received via a variety of options — a deposit on a bank account, a mobile wallet or by collecting cash from retail points — all of these are provided by the MoneyGram giant.
Head of MoneyGram Alex Holmes believes that the launch of this new remittance corridor will allow the company to increase its customer base around the world and improve relations with current clients.
Frente Corretora is one of Ripple's partners in Brazil.
The company is already well established in Brazil, boasting more than 1,000 outlets in the country, where retail customers can send cash overseas, and they have been working there for a quarter of a century already.
MoneyGram and Ripple's mutual past
These two companies were partners for a few years, with Ripple pouring large investments into MoneyGram and buying its stocks. MoneyGram stated that it is planning to begin using Ripple's ODL technology in their remittances, and they settled billions of USD using XRP, according to Alex Holmes.
However, the partnership ended in 2021 after the SEC initiated a lawsuit against Ripple. Then, MoneyGram first suspended the partnership, Ripple dumped all MoneyGram shares it owned and in March the blockchain giant officially terminated the partnership.
As reported by U.Today, later in 2021, Ripple's rival Stellar began negotiating to buy MoneyGram, but the deal did not work out.