Digital cash transfer service MoneyGram International, Inc. (NASDAQ: MGI) announced on Wednesday it is teaming up with cryptocurrency cash exchange Coinme to expand access to bitcoin. MoneyGram says the partnership will enable the cash payout and funding of digital currency purchases, in addition to sales.
MoneyGram also claimed that the collaboration with Coinme will provide a fast and effortless way for customers to purchase and sell bitcoin with cash. Neil Bergquist, Coinme CEO, spoke about the partnership by stating:
“By integrating its global infrastructure with our licensed crypto exchange technology, we can enable the purchase and sale of cryptocurrencies across its system using cash. This is a major milestone for the bitcoin and cryptocurrency communities, and for the millions of people who will benefit from a trusted, easy and affordable onramp to digital currency.”
The cash transfer company says customers will be able to use the services at select locations beginning in the U.S. in the coming months. Additional countries and cryptocurrencies will be made available soon afterwards.
Coinme Partnership Comes Just Months After MoneyGram Ended Ripple Relationship
MoneyGram previously had an extensive partnership with Ripple Labs, the company behind the XRP token, which began in 2018. According to their agreement, Ripple was paying MoneyGram to use the XRP token for international settlement. MoneyGram is said to have made $61.5 million in “market development fees” from Ripple over the course of their partnership.
However, the tides shifted after the U.S. Securities and Exchange Commission sued Ripple in December 2020 due to XRP being an unregistered security. MoneyGram halted the partnership in February 2021 before completely ending collaboration a month later.
MoneyGram describes itself as a worldwide provider of innovative money transfer solutions and is known globally as a financial connection for friends and family. The company provides person-to-person cash transfer and payment services in more than 200 countries and territories through a global network of roughly 350,000 places, working with retailers, international post offices, and banks.