Remittance firm MoneyGram continues to receive millions in “market development fees” from its investor, blockchain payments firm Ripple.
- According to MoneyGram’s financial results for Q3 2020 posted Thursday, Ripple handed over $9.3 million over the period.
- After $0.4 million in “transaction and trading expenses,” MoneyGram saw a net benefit of $8.9 million.
- The payment is the latest since Ripple, which provides several payments products aimed at financial institutions, invested $50 million in the money sender in November 2019.
- In Q2 2020, MoneyGram received $15.1 million for the same stated purpose.
- Previously, MoneyGram has described the market development fees as compensation for providing liquidity to Ripple’s On-Demand Liquidity (ODL) network – its payments product using the XRP cryptocurrency to send money across borders.
- MoneyGram also received $16.6 million in Q1, and a total of $11.3 million in H2 2019.
- All in, Ripple has funded the firm to the tune of over $52 million for providing ODL liquidity.
- Back at the start of 2018, MoneyGram became one of the biggest firms to publicly say it was piloting XRP in its remittance services.