Payments firm Ripple has given MoneyGram, a remittance firm, over $11 million in the past half year, according to regulatory filings with the Securities and Exchange Commission (SEC).
The funds are broken up between two quarters, $2.4 million in Q3 and an additional $8.9 million in Q4, for a total of $11.3 million. The Q4 “financial benefit” as MoneyGram calls the sum, was not included in its Q4 revenue, reported as $323.7 million. Instead, it was accounted for a contra expense in its operating expense on the recommendation of the SEC. That required MoneyGram to restate its revenue down by $2.4 million but cut operating costs by the same amount, leaving earnings unchanged.
“MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities,” the accompanying press release reads.
Previously, MoneyGram disclosed it utilizes various Ripple products, including its On-Demand Liquidity product that runs on XRP. It had piloted Ripple’s flagship cryptocurrency in 2018.
The new filings do not state what Ripple’s $11 million is for. However, in MoneyGram’s third-quarter filing three months ago, it said its agreement with Ripple “allows MoneyGram to utilize Ripple’s On Demand Liquidity blockchain product (formerly known as xRapid)” and XRP to facilitate cross-border settlements.
“The Company is compensated by Ripple for developing and bringing liquidity to foreign exchange markets, facilitated by Ripple’s blockchain, and providing a reliable level of foreign exchange trading activity. The Company expects that this partnership, at scale, will reduce our working capital needs and generate additional earnings and cash flows,” the third-quarter filing said.
Ripple has already had close financial ties to MoneyGram. The firm behind XRP owns over 10 percent of MoneyGram common stock, acquired through investments adding up to $50 million.
An external spokesperson could not be immediately reached for contact.