MoneyGram, a remittance company and partner of Ripple (XRP), has released its third quarter report for 2020. According to the report, Ripple transferred $ 9.3 million in cash to MoneyGram in the third quarter of this year.
Ripple started working with MoneyGram for strategic cooperation in June 2019. MoneyGram published a new report in the third quarter of 2020. According to the report, Ripple made a net transfer of $ 9.3 million in cash to MoneyGram. According to another detail disclosed in the report, while the transaction expenses amounted to $ 400 thousand, the quarterly net gain was $ 8.9 million.
MoneyGram’s earnings grew
If a comparison is made with the published report, Ripple paid 38.4% less in market development fees in the second quarter of 2020. Ripple paid $ 9.3 million in the third quarter and paid $ 15.1 million in the second quarter to MoneyGram. However, MoneyGram’s net earnings grew even more in the third quarter. It was announced that the reason for this was the significant decrease in the company’s trade expenses this quarter.
Ripple bought shares in MoneyGram
Ripple had a nearly 10 percent stake in the company, investing $ 50 million in MoneyGram in 2019. Ripple has deployed an XRP-based payment method to improve instant cross-border transactions after partnership. In this way, Ripple has introduced Optional Liquidity (ODL) support to the MoneyGram infrastructure. The company pays MoneyGram millions of dollars each year to provide liquidity to this method.
MoneyGram defined these funds from Ripple as “market development fee” in their earnings reports. These fees were originally included in MoneyGram’s revenue figure, a news site reported. However, the United States Securities and Exchange Commission (SEC) made a proposal for MoneyGram in March, recommending it classify these charges as “counter-expenses.”
Although MoneyGram has a partnership with Ripple, it was announced by MoneyGram CEO Alex Holmes that there is no XRP purchased as a company.