MoneyGram, the global money transfer company known for peer-to-peer payments, is launching an on- and off-ramp service for digital wallets for easy crypto-to-cash switch.
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The service is initially being rolled out in a few select markets including Canada, Kenya, the Philippines and the US, at any MoneyGram location in these countries. The company said it was focusing on these markets because they are “remittance markets,” or places where there are a high volume of cross-border transactions.
In a press release shared with Diutocoinnews, MoneyGram and Stellar are strengthening their cooperation. The payment company has begun the deployment of a crypto-to-cash service on this blockchain. This product will operate as the “first of its kind global on and off-ramp” service.
This will make it easy for digital wallet customers to move between fiat to cryptocurrency to fiat again, without needing a bank account or credit card, the company said in a press release.
The company is working in partnership with Stellar Development Foundation, a non-profit that develops the Stellar blockchain.
The crypto-to-cash services are aimed at providing people with access to digital assets and improving MoneyGram’s customers experience in sending and receiving remittances. In order to achieve this objective, the service will be supported by Circle’s stablecoin USDC Coin (USDC).
The partners expect users to be able to use cryptocurrencies for new use cases, to remove friction from the process of exchanging fiat for crypto, to increase financial inclusion, and to reduce costs from the process of sending cross-border transactions.
For the first time, as the release claims, this process will be instantly settled with low cost and high accessibility. In order words, users will be able to send U.S. dollars, in the form of USDC, via MoneyGram and another user will receive it “in near-real-time”.
The partners believe this will facilitate and accelerate the collection of funds, and improve the efficiency of this process while reducing risk. Users won’t be required to own a bank account or credit card. The funds will be held in a digital wallet with the capacity to load or cash them out.
Alex Holmes, MoneyGram Chairman, and CEO, said the following about the company cooperation with the Stellar Development Foundation (SDF) and how they attempt to increase people’s access to financial services