MoneyGram Announces New Pilot with the Stellar Development Foundation

MoneyGram, a remittance-focused company, announced a new pilot in the Stellar Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term after inking a partnership with the Stellar Development Foundation (SDF). According to the blog post, both parties agreed to launch a live cash-in and cash-out pilot in the US.

That said, participants can deposit cash into their wallets at participating MoneyGram locations and send Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term internationally via Stellar’s USDC. Also, the pilot allows participants to exchange USDC for any fiat currency supported on the MoneyGram platform. “Electronic wallets, app-based financial services and digital assets are more popular than ever, and one payments company has taken note of the growing adoption of these innovative products and services,” the Stellar Development Foundation noted.

Moreover, settlements are nearly instantaneous via USDC payments, which expects to accelerate ‘fund collection, improve efficiency and reduce risk’.

“At its core, this unique partnership embraces the reality that, even though the utility and adoption of digital assets are growing, cash isn’t going anywhere. Many markets across the world still run on cash, and these markets often serve large un- and under-banked populations,” the SDC pointed out.

Stellar-MoneyGram Deal's Timeline

In September, MoneyGram inked the formal partnership with Stellar. The remittance-focused company is a former Ripple partner, while Stellar is a competitor of the blockchain firm behind the development of XRP.

The new service is expected to be available worldwide in 2022, as the pilots will go live in ‘select markets’ during the rest of this year. Moreover, United Texas Bank will serve as the settlement bank between MoneyGram and Circle, which is the issuer of the USDC stablecoin.

In May, Moneygram announced that it had partnered with the Bitcoin ATM operator, Coinme to facilitate the Bitcoin transactions services. The MoneyGram and Coinme duo is set to take 4% of every transaction, along with a flat fee of $2.75. In addition, Walmart-based MoneyGram locations will charge an extra $2.