The individual coin price of Ripple’s XRP cryptocurrency is still struggling to break above the significant $0.50 level despite recent news of a lucrative partnership with payment gateway MoneyGram.
MoneyGram is an international remittance company based in the United States that has been helping customers to send money abroad for over 70 years. It is one of the largest providers of international remittance services in the world, with offices in over 200 countries and regions.
MoneyGram’s stock (NASDAQ:MGI) surged by over 140 percent this past Tuesday when the news was announced, reaching a high of $3.60 at one point, before correcting slightly. XRP, by comparison, only enjoyed a minor rally to a high of $0.453, less than a five percent gain. The price has now retraced and is trading around $0.428.
So why is XRP not benefiting from the news?
Although the news is good in the long-run for the overall adoption of cryptocurrencies and XRP, it is MoneyGram that is really benefiting from the partnership. The Ripple Corporation will invest a reported $30 million into MoneyGram with the possibility of an additional $20 million down the line. The investment will be a huge boost for MoneyGram, considering that traditional money transfer services are at threat of being replaced by blockchain companies and therefore need to adapt or die out.
While XRP acts as a vehicle to support international transfers for some of Ripple’s service, it is not directly linked to the company in the way that most cryptocurrencies projects work. For this reason, developments at the Ripple Corporation don’t necessarily affect the price of XRP in such a significant manner. Following the announcement on Tuesday, MoneyGram stock corrected by 25 percent to current levels around $2.39.
The growth of digital payment platforms
Ten years after Bitcoin began its life as a means of digital cash transfers, large corporations finally appear to be rushing to join the party. Facebook recently announced the launch of its ‘Libra’ coin cryptocurrency, which drew a torrent of mixed opinions from tech heads, crypto enthusiasts and financial analysts alike.
Many crypto traditionalists believe Facebook cannot be trusted to manage consumers money correctly, due in part to its lack of responsibility regarding data sensitivity. Others see the development as a potential boost for the cryptocurrency industry, exposing it to Facebook’s 2.4 billion-strong user base.
Whatever the eventual outcome, it seems 2019 is certainly shaping up to be an interesting year in the world of digital cash and online payments.