MoneyGram partners with Ripple

NEW YORK: Shares of MoneyGram International Inc jumped 10.5 percent on Thursday, after the money-transfer company said it partnered with blockchain firm and bitcoin-rival Ripple.

As part of the arrangement, MoneyGram will test the use of Ripple´s cryptocurrency, XRP, to move funds in a faster and cheaper way.

Ripple, created by the founder of bitcoin exchange Mt Gox, has risen 31,000 percent over the past year, overshadowing bitcoin´s 1,200 percent increase.

XRP rose to $2.25 during trade on Thursday, according to coinmarketcap.com. Many see it as a close contender to bitcoin, which is by far the biggest cryptocurrency with a market value of more than $250 billion.

XRP allows banks and payment companies to send money quickly, no matter the location. Its transaction fee, at just "fractions of a penny", is also comparable to bitcoin´s $30 per transaction fee. Several companies such as UBS and Santander already use Ripple´s products to enable payments.

In November 2017, American Express Co also launched an instant blockchain-based payment system using Ripple. China´s Ant Financial´s deal to buy MoneyGram for $1.2 billion collapsed last week.