During an earnings call for Q1 2020, MoneyGram chairman and chief executive, Alexander Holmes, revealed that it was a “quiet quarter” regarding the firm’s partnership with blockchain payments company Ripple (XRP).
Ripple first announced its “strategic partnership” with the Nasdaq-listed money transfer company during June 2019. The partnership’s initial term was set at two years, with Ripple providing a capital commitment of up to $50 million over 24 months in exchange equity.
The announcement was also slated to see Ripple act as MoneyGram’s “key partner for cross-border payment and foreign exchange settlement using digital assets.”
Ripple Partnership ‘Quiet’ During Q1 for MoneyGram
Despite Ripple drumming up high expectations for the partnership, MoneyGram’s CEO stated that Q1 2020 was “quiet” in terms of Ripple’s services.
“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 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,” Holmes noted.
MoneyGram to use Ripple in new markets and services
Despite expressing happiness with the deal thus far, Holmes’ comments indicate that Ripple is still yet to solidify its services or target market:
“We continue to flex with them as they continue to expand the service and move some things around, and really figure out what they want, the product to look and feel like, and how they want to take that to various markets. So I think it’ll change over time. I think the results of what we’re doing will vary by quarter and by month.”
“But, yes, it’s been a good partnership, and definitely pleased with what we’ve been doing,” he added.
Ripple used for testing new services and markets
Looking forward, Holmes expects that the partnership will generate revenues from experiments into “new services and new corridors.“
Holmes’ comments come shortly after Robert Lisv, the CEO of major U.S.-Latin American remittance provider and Ripple partner, Intermex, revealed that the firms’ partnership will not see Ripple’s technology utilized in its core markets.
“So, you won’t really see us leveraging Ripple in our core markets. I think it will bring us more growth in newer markets in places where we’re exploring going into ancillary products,” he stated during Intermex’s March earnings call.
Lisv’s remarks directly contradicted Ripple’s Feb. 5 press release announcing the partnership, which claimed that the deal would “enabl[e] faster cross-border payments between the U.S. and Mexico.”