According to a press release published yesterday, MoneyGram will pilot XRP in its payment flows.
Industry data shows that the platform - which takes two to three seconds to process a standard payment - charges "fractions of a penny" in transaction fees, maximising profits for financial institutions.
XRP allows banks and payment companies to send money quickly, no matter the location. The money transfer company will access and use the token through xRapid, Ripple's on-demand liquidity product.
Ripple one of the top cryptocurrencies in terms of market capitalization has partnered with globally renowned payment service MoneyGram.
Brad Garlinghouse, chief executive of Ripple, described the partnership as a strategic one, coming hot off the heels of its joint venture with American Express, and said it would demonstrate XRP's ability to lower costs for money transfers between friends and family.
MoneyGram shares rose more than 8 percent, to $13.15, after it announced the Ripple partnership.
But it appears the cryptocurrency's dog days are over (for now) after its price exploded following the announcement of a potentially historic deal with the cash transfer giant Moneygram. Ripple's blockchain technology and digital currency could move money far faster, the companies said in a statement Thursday. "We're hopeful it will increase efficiency and improve services to MoneyGram's customers", MoneyGram CEO Alex Holmes said.
Global payments is a growing market, particularly with mobile solutions increasingly coming on board. Like its longtime rival Western Union, MoneyGram has faced competition from a new generation of low-priced Internet-based services like TransferWise.
In recent weeks, Ripple has been the subject of intense scrutiny as XRP soared exponentially to briefly become the world's second most valuable cryptocurrency after bitcoin.
The money transfer company clearly sees a lot of value in XRP... Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them.