Ripple’s former chief market strategist Cory Johnson says MoneyGram’s recent Q2 conference call reveals how committed the payments giant is to using the digital asset XRP.
“Finally had a chance to read the MoneyGram Q2 conference call transcript and was truly surprised how openly committed management is to Ripple and XRP. I expected coy. What I got was a sense that they understand how blockchain WILL, not ‘might’, change their business – and soon.”
MoneyGram used its conference call to reveal that the XRP-powered cross-border payment solution is now up and running.
Johnson points to a statement from MoneyGram’s chief financial officer Larry Angelilli, who says the company expects xRapid to start impacting its bottom line in the fourth quarter of this year, as a sign that the technology will become a core part of the business.
“We’ve been ramping [xRapid] starting with some pretty low levels. I don’t foresee really much of a material impact on Q3. We’re live. We’re doing stuff. We did move money to Mexico in a minute 13 seconds. But I think we’re going to ramp. We’re not going to be maxing out or stressing their system. And so it will build gradually. I think in the fourth quarter, we’ll start to see some impact.
I think due to the kind of confidentiality and the unique nature of what we’re doing, and I don’t think we can really describe at this point what the P&L impact is, but I would just say that we’re expecting it to influence Q4.”
Johnson says the statement indicates MoneyGram expects xRapid to lower the company’s costs as soon as October.
“Think about that. He’s saying operating expenses ($149 million last quarter) will noticeably decrease as soon as the quarter starting in October. That’s bold.”
Ripple and MoneyGram revealed their new partnership in July. Ripple bought $30 million worth of shares in the company, with the option to purchase another $20 million over the next two years.