MoneyGram reports $15.1 million from Ripple

  • Payments company MoneyGram reveals results for second quarter 2020 and Ripple payment of $15.1 million in XRP.
  • Ripple CEO Brad Garlinghouse denounces new scam on LinkedIn’s platform.

Ripple‘s payment company and partner, MoneyGram, published its results for the second quarter of 2020. In the MoneyGram report, the company revealed that it received $15.1 million from the payment solutions company, Ripple.

According to the report, MoneyGram had total revenue of $279.8 million with a 14% decline in the first part of the quarter. In terms of money transfers, the company reported earnings of $253 million and a 10% drop in the first part of the quarter attributed to the impact of the Covid-19 pandemic.

The company’s operating expenses improved by 17% or $51.7 million, in part because of Ripple’s contribution. The report indicates that it received $15.1 million from Ripple for “market development fees” related to transaction and trade expenses which stood at $6.3 million. MoneyGram’s total profit from the Ripple payment was $8.8 million.

In 2019 MoneyGram also reported an $11.3 million payment from Ripple. Ripple’s CEO, Brad Garlinghouse, said at the time of the report’s release that the payments are a way to “encourage” its partners to develop and use Ripple’s products. Additionally, a MoneyGram representative confirmed that Ripple pays them with the digital assets XRP that they “sell as soon as they receive them”.

Commenting on the recent results, MoneyGram CEO Alex Holmes acknowledged that the industry has suffered a setback due to the pandemic. However, Holmes points out that MoneyGram has been able to adapt by adopting digital payment solutions, such as those offered by its partner Ripple. Holmes stated:

We’re excited about the underlying momentum in our business driven by our digital transformation. The investments that we have made over the past few years have allowed us to build a fast growth digital business which not only has higher customer retention and productivity rates, but also surpassed the walk-in business during the quarter delivering higher margins on average. With digital now representing 27% of money transfer transactions, the business is providing a significant contribution to our bottom-line results.

Ripple CEO denounces LinkedIn scam

On the other hand, Ripple’s CEO continues to denounce scams that take advantage of the company’s image for the benefit of bad actors. Through his Twitter account, Garlinghouse reported a new scam on the LinkedIn platform. Therefore, Garlinghouse warned the community to be vigilant. Ripple’s CEO stated the following:

Another day, another platform hosting scams… LinkedIn is the latest, with imposter profiles created by bad actors. PSA: stay vigilant and skeptical of suspicious requests/messages. If it looks like a scam, it probably is!

The bad actors, according to the Garlinghouse complaint, created fake profiles using the image of Chris Larsen, co-founder of Ripple. In one of the fake profiles, Larsen’s biography features him as “Chief Executive Officer at Bitcoin.” As reported by CNF, Garlinghouse and Ripple have a pending lawsuit with YouTube for their alleged involvement in crypto-related scams and the damage to the payment solutions company’s reputation.