Earlier this week, MoneyGram made it clear that it is more than willing to experiment with Ripple’s technology. Additionally, the remittance giant will use XRP for some of its day-to-day operations. The company has now clarified its position in this regard, as it will only run a pilot program for the time being. It has yet to be determined whether or not MoneyGram will use XRP for its consumer-oriented products in the future.
MoneyGram Will Trial XRP
When news broke about MoneyGram using XRP, it seemed a lot of people assumed the company would use this new asset for day-to-day operations. As is usually the case when announcements like these are made, that is not entirely true. More specifically, MoneyGram has confirmed that it took notice of Ripple and sees the benefit in using XRP for cross-border payments. That situation has not changed in the slightest.
Before a major rollout can occur, MoneyGram wants to conduct a pilot program first and foremost. That is only understandable, as integrating Ripple’s technology and its XRP asset with the company’s services will not be without challenges. Although XRP may offer a lot of benefits to the company right now, it wants to first experiment with this technology and see how it affects its day-to-day operations.
The new pilot program will be tested on internal MoneyGram international processes. For now, XRP will play no role in the services enjoyed by millions of consumers around the world. We do know Ripple wants to offer an improved liquidity solution for entities such as MoneyGram. It is now up to the remittance company to determine whether or not pursuing this particular option is in its best interest. Nothing has been set in stone at this stage.
Hello, This is a pilot program being tested on internal MoneyGram International processes and is not intended for consumer use.
— MoneyGram (@MoneyGram) January 11, 2018
Some people may think this is a major setback, but it doesn’t necessarily have to be one. After all, MoneyGram is taking an important first step toward giving Ripple and XRP a fair chance at disrupting the remittance industry. While there is no guarantee of success, it is still an improvement from a few months ago. Things often unfold rather slowly in the financial sector, and this pilot program is a good example of how “the system works” in this regard.
For the time being, there is no indication as to when this pilot program will commence or how long it will run for. Merging MoneyGram’s internal processes with xRapid will require some work and pose many challenges. At the same time, it will show both companies whether or not they can effectively complement one another in order to benefit consumers all over the world. The stakes are very high as far as this pilot program is concerned, but even if the trial is successful, MoneyGram may decide not to go ahead with Ripple and XRP.
How all of this will play out in the long run has yet to be determined. There is genuine interest in what Ripple has to offer and how XRP can play a role in shaping the future of remittances. However, there is no guarantee at this point that MoneyGram will use Ripple’s technology. We will have to wait and see whether or not the pilot program yields acceptable results. It is evident that the remittance industry can benefit from new liquidity solutions, but there are many different players in the market right now.