Why MoneyGram Launched A Bankless Payment Method On Stellar
19 November 2021 - 10:56AM
NEWSBTC
Payment giant MoneyGram International continues to cement its
partnership with the Stellar ecosystem. Via an official post, the
company announced a new stage for its collaboration by deploying a
live cash-in and cash-out pilot initiative in the United States.
Related Reading | Stellar To Launch New Europe-Africa Payment
Corridor With This Partner After ending its relationship with
payment solution company Ripple due to the U.S. SEC lawsuit against
its executives, MoneyGram established a collaboration with the
Stellar Development Foundation. In a little under 2 months, the
partners have taken important steps to improve the company’s
payment settlement capabilities. According to MoneyGram, their
newest pilot initiative has allowed them to deploy “one of the
quickest, most seamless integrations yet”. As of now, participants
in the U.S. can make dollar deposits into their wallets at certain
MoneyGram establishments and leverage Stellar-based USDC Coin
(USDC) to send instant payments abroad. In addition, participants
will be able to exchange Stellar USDC for “any cash currency
supported” on MoneyGram. The official post claims: With Stellar,
MoneyGram enables consumers to seamlessly convert USDC to cash, or
cash to USDC – all without requiring a bank account. Since USDC is
the world’s fastest growing digital dollar currency, the utility
and liquidity of this versatile digital asset will only grow as
more wallets and companies join the Stellar ecosystem The company
added that this program has made MoneyGram’s payment settlement
“instantaneous”, for the first time since its inception. In that
way, the company believes that consumers will be able to benefit
from an increase in payment efficiency, less risk, and a speed-up
fund collection. Unlike its competitor, MoneyGram believes that
cash money will be a part of the future as a tool for the unbaked.
In that sense, they attempt to create alternatives to cash and
expand the access to financial opportunities to everyone. How Does
The MoneyGram And Stellar Pilot Solution Works? Per the post,
MoneyGram has used Stellar’s resources and documentation for their
developer kits and its “well-designed set” of ecosystem protocols
(SEPs) with various APIs to create their pilot solution. Related
Reading | How Stellar’s $40M Investment In Tala Will Give Millions
Access To Financial Services Expected to be publicly available in
2021, Jake Urban, Senior Software Engineer at the Stellar
Development Foundation made a step-by-step demonstration on how
users can exchange and send money via the MoneyGram solution, as
seen in the video below. The company said: By integrating with
Stellar, MoneyGram is offering its millions of users a local fiat
entry into blockchain, providing those in emerging markets easier
access to digital assets than ever before. This pilot is just the
first of many steps to create greater access to the world’s
financial system for everyone, regardless of where they are. As of
press time, XLM trades at $0,32 with a 6% loss in the daily chart.
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