MoneyGram records 100% customer growth against last year’s usage

Moneygram saw a major rise in the numbers of user transactions for May this year as against the same period last year, according to a press release from the company.

This increase coincided with the company’s partnership with Ripple that began in June last year.

The company’s fortunes have also increased in the market. Yesterday, MoneyGram rose to $4.03, which represented a sharp increase since markets opened on Monday. This increase is coming after the recent release of positive reports of the firm’s customer growth and financial health report.

Over 100% year-on-year growth

The press release reported over 100% year-over-year (YoY) growth in customers’ transactions in the first quarter of 2020.

Towards the end of last year, Ripple Inc sent a $20 million funding to MoneyGram, which has boosted its operational services. It seems the results of Ripple’s partnership and the extra funding is now showing.

The funding is the completion of Ripple’s $50 million offerings to have a 15% stake in the international remittance money processor. Ripple invested in the company to run its pilot program to test the digital token XRP.

MoneyGram platform still going stronger

Last month, the MoneyGram online platform outperformed other platforms with a record number of 107% year-on-year growth.

MoneyGram’s chief operating officer, Kamila Chytil, pointed out the reason for the growth. According to her, the main driver of this growth was the launch of its mobile device application, as it contributed to more than 80 percent of the online transactions.

“We’ve built a modern, mobile, API-driven company that is resonating with millions of consumers across the globe,” she said.

Accelerated growth coincided with Ripple’s partnership

The first quarter of the year has seen the expansive registration of customer transactions, with a growth rate of 57% despite the discouraging business environment caused by the challenges of COVID-19.

However, Ripple has denied having any role to play in the exploding numbers of MoneyGram, even though it has invested heavily in the company.

Earlier in February this year, Ripple released out about $11.3 million to MoneyGram in funding as “money development fees”, which was termed an incentive program.

In response to the disbursement, Chief Executive Officer of MoneyGram, Alex Holmes, said the company is excited that it’s still seeing strong digital growth in May, which highlighted the impressive progress the entire team has made over the past few months. He said the progress towards digitizing the movement of money has been a huge one.