Global P2P payments firm MoneyGram recently released its quarterly financial report for Q3 2020. Ripple, a significant investor in MoneyGram, has continued to push funds into the payments firm all throughout its journey, and Q3 2020 was no different.
According to the financial report, Ripple invested $9.3m in MoneyGram over the duration of the last quarter. Out of this amount, $0.4m was earmarked for “transaction and trading expenses”, and MoneyGram observed a net benefit of $8.9m.
These payments from Ripple can be traced back in time. MoneyGram received a little over $15m from Ripple in Q2 investments for market development reasons. The payments firm accepted this investment in exchange for providing special liquidity services for Ripple’s proprietary network. Ripple uses this network to transfer its signature cryptocurrency, XRP, across the world.
All included, Ripple has invested more than $50m in MoneyGram for its on-demand liquidity services. Additionally, MoneyGram has propounded the use of XRP cryptocurrency in its remittances services.
What are MoneyGram’s services and are they profitable?
MoneyGram provides cross-border P2P transactions and payments all over the globe. About the company’s valiant Q3 2020 performance, CEO Alex Holmes said “Our customer-centric strategy and growing active customer base helped deliver year-over-year money transfer revenue growth for the quarter, while the strength of our Adjusted EBITDA and cash flow demonstrates how our investments to build a scalable infrastructure are paying off. It’s exciting to see the successful execution of our digital transformation be a catalyst for sustainable and profitable growth.”
MoneyGram covered its quarterly income with $323.2m earned in this quarter. It also lowered its operating expenses by 6% Y/Y and improved its operating income by more than 100% Y/Y. Positive net income in Q3 2020 promises to bring more achievements in the remainder of the year for MoneyGram.