Why MoneyGram Launched A Bankless Payment Method On Stellar

MoneyGram International, the payment giant continues to build its alliance with Stellar. The company posted an official announcement that it would be launching a pilot cash-in/cash-out initiative in the United States.

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MoneyGram formed a partnership with the Stellar Development Foundation after it ended its relationship to Ripple, a payment solutions company. This was in response to the U.S. SEC suit against Ripple’s executives. 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”. Participants in the U.S. have now been able to deposit dollars into their MoneyGram accounts at specific MoneyGram outlets and use Stellar-based USDC Coin(USDC), to instantly send international payments.

In addition, participants will be able to exchange Stellar USDC for “any cash currency supported” on MoneyGram. According to the official post:

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. The company hopes that this will allow consumers to enjoy a greater payment efficiency and lower risk as well as faster fund collection.

MoneyGram, unlike its rivals believes cash money is a part and parcel of the future. They are trying to offer alternatives to cash, and increase access to financial options for everyone.

What is the MoneyGram and Stellar Pilot Solution?

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.

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The Stellar Development Foundation’s Senior Software Engineer Jake Urban demonstrated how people can send and exchange money using the MoneyGram system. Company said that:

MoneyGram, which has integrated with Stellar is giving its many millions of users an easy fiat entry to blockchain. It also gives those from emerging markets greater access to digital assets. 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.

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