Payments company Ripple has completed a $50m investment in money transfer services provider MoneyGram.
Ripple initially committed to the investment in MoneyGram in June of this year, when it pledged to invest $50m in total and made an initial payment of $30m.
The company has now made its final payment on the deal with $20m in equity at $4.10 a share. The payments startup now owns about 10% of MoneyGram’s outstanding common stock.
Ripple will also own about 15% on a fully-diluted basis including non-voting warrants held by it.
The funding will support MoneyGram’s continued use of Ripple’s On-Demand Liquidity service, which leverages XRP cryptocurrency.
Since June this year, MoneyGram has begun using XRP to carry out transactions in Europe, Australia and the Philippines.
MoneyGram chairman and CEO Alex Holmes said: “Our partnership with Ripple is transformative for both the traditional money transfer and digital asset industry – for the first time ever, we’re settling currencies in seconds. This initial success encourages us to expedite expanding our use of On-Demand Liquidity.
“Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services.”
MoneyGram operates globally in the $600bn global remittance market, serving various customers in over 200 countries and territories, supporting multiple currencies.
Earlier this month, Ripple surpassed 300 customers. The company has customers in over 45 countries and 6 continents using RippleNet, with payout capabilities in more than 70 countries.