- MoneyGram International, a longstanding partner of Stellar, has launched the MoneyGram Online (MGO) service in Chile, enabling residents to send money worldwide.
- Chile is one of the largest remittance corridors in South America, and MoneyGram has been offering diverse ways for Chileans to send money worldwide for over 25 years.
MoneyGram Launches MGO Service in Chile
MoneyGram International has launched the MoneyGram Online (MGO) service in Chile, a move that allows residents to send money from the country to friends and family worldwide. The announcement comes as a result of a longstanding partnership between MoneyGram and Stellar.
MoneyGram Chairman and CEO Alex Holmes expressed excitement about the launch, given Chile’s position as one of South America’s largest remittance markets.
Chile’s Remittance Market
Chile is one of the largest remittance corridors in South America, and its migrant population of 1.5 million people sent $762 million through traditional means in 2021 alone. However, there is a growing demand for online cross-border settlements in Chile, which MoneyGram hopes to address through the MGO solution.
The MGO service will enable Chileans to send money to their loved ones worldwide with greater convenience and ease.
MoneyGram’s Fintech Offerings
MoneyGram is a major fintech company that enables users to move and manage money across various parts of the world. The company’s clients can send funds directly into bank accounts and mobile wallets, and they can also buy, hold, and sell cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, using the MoneyGram mobile app.
MoneyGram has been taking significant steps to offer the best fintech services to its clients. One such move was partnering with the Stellar Development Foundation (SDF) in 2021 to utilize blockchain technology for cross-border settlements.
Stellar’s Partnership with MoneyGram
MoneyGram collaborated with SDF in 2021 to integrate its network with the Stellar blockchain, enabling cash funding and payout in local currency for consumers using USD Coin (USDC). This partnership is notable given the history of MoneyGram’s relationship with Ripple.
Ripple and MoneyGram were involved in a partnership in 2019, where the former acquired a $30 million stake in the fintech company. However, MoneyGram terminated its partnership with Ripple in March 2021 after Ripple was taken to court by the U.S. SEC over its alleged illegal XRP offering.
A few months later, MoneyGram partnered with SDF to utilize the Stellar blockchain for cross-border settlements. It’s 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).
Overall, the launch of the MGO service in Chile marks another significant step for MoneyGram and Stellar in their efforts to provide fast and efficient cross-border payment solutions to consumers worldwide.