MoneyGram has launched the MoneyGram service in Chile.
Stellar partner MoneyGram International has launched the MoneyGram Online (MGO) service in Chile. According to a press release today, residents in Chile can utilize the solution to send money from the country to friends and families worldwide.
Commenting on the development, MoneyGram Chairman and CEO Alex Holmes said the company is thrilled to launch the MGO service in Chile, one of South America’s largest remittance markets.
“After our recent successful launch in Brazil, we are especially excited about our strong momentum in Chile,” said Holmes.
Remittance Service in Chile
It is noteworthy that over the past 25 years, MoneyGram has offered diverse ways for Chileans to send money worldwide. Chile is one of the largest remittance corridors in South America.
In 2021, a migrant population of 1.5 million people sent a whopping $762 million through traditional means. However, there is a new demand for online cross-border settlements in Chile. MoneyGram hopes to address these demands through the MGO solution.
MoneyGram Service
MoneyGram is a major fintech company that enables users to move and manage money across various parts of the world. Through its set of fintech offerings, MoneyGram clients can send funds directly into bank accounts and mobile wallets.
Through the MoneyGram mobile app, MoneyGram users can also buy, hold, and sell cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
The company has been taking key steps to offer the best fintech services to its clients. One of such move includes partnering with Ripple’s rival, the Stellar Development Foundation (SDF). MoneyGram collaborated with SDF in 2021 to utilize blockchain technology for cross-border settlements.
Under the partnership, MoneyGram’s network integrated with the Stellar blockchain to enable cash funding and payout in local currency for consumers using USD Coin (USDC).
Ripple’s Rivalry With Stellar
It bears mentioning that Ripple and MoneyGram were once involved in a partnership in 2019, where the former acquired a $30 million stake in the fintech company.
However, shortly after Ripple was taken to court by the U.S. SEC over its alleged illegal XRP offering, MoneyGram terminated its partnership with the crypto behemoth in March 2021.
A few months later, MoneyGram partnered with Stellar Development Foundation to utilize the Stellar blockchain for cross-border settlements.
It is worth noting that Stellar was launched by Ripple’s co-founder Jed McCaleb, who received 8 billion XRP for his role in creating OpenCoin (later renamed to Ripple Labs).
