By Tobi Loba
Ripple, the blockchain payments firm, has reportedly paid millions in market development fees to the money transfer giant MoneyGram.
According to the third quarter financial results published by MoneyGram on 29th October 2020, the remittance firm received about $9.3 million from Ripple over the period.
After $400,000 in transaction and trading expenses, MoneyGram amassed a net benefit of $8.9 million.
Read Also: Ripple Survey Reveals Huge Interest in Bitcoin, Ethereum, XRP among Payment Professionals
Latest Payment to MoneyGram by Ripple since 2019
This payment is the latest since Ripple, the provider of several payment products aimed at financial institutions, invested the sum of $50 million in the money transfer giant in November 2019.
In the second quarter of 2020, MoneyGram received the sum of $15.1 million for the same purpose earlier stated.
The Purpose of the Market Development Fees
MoneyGram has previously described the purpose of the market development fees. According to the remittance firm, the fee is meant to serve as compensation for providing liquidity to Ripple’s On-Demand Liquidity (ODL) network.
Note: ODL is Ripple’s payments product that uses the digital token XRP to send money across borders.
Additionally, MoneyGram received $16.6 million in the first quarter of 2020, and the sum of $11.3 million in H2 2019.
Read Also: Ripple Finally Confirms Partnership with Bank of America (BoA) at Swell 2020
As it stands now, the San Francisco based payment firm has funded the money sender to the tune of over $52 million for providing liquidity for the XRP-powered payment product, ODL.
In early 2018, MoneyGram became one of the largest firms to publicly reveal its intention to pilot XRP in its remittance services.
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