In a recently published case study by the Stellar Foundation, the groundbreaking collaboration between MoneyGram International and the Stellar blockchain has been highlighted. This case study sheds light on the innovative solutions and transformative potential of the partnership, as MoneyGram Access brings cash-to-crypto transactions to a global scale. Let’s explore how this partnership is revolutionizing the world of global payments and financial inclusion.
Transforming Cross-Border Payments MoneyGram’s core objective has always been to provide efficient cross-border payment solutions to a diverse client base worldwide. As the fintech industry progressed, the company recognized the transformative potential of blockchain technology. The challenge lay in combining MoneyGram’s global reach with the power of blockchain to create a comprehensive and accessible financial ecosystem.
MoneyGram Access and Stellar Blockchain MoneyGram International embarked on a journey to integrate Stellar blockchain into its services, leading to the development of MoneyGram Access. By leveraging the Stellar blockchain, MoneyGram Access allows users to seamlessly convert physical cash into USDC, a stablecoin backed by cash and U.S. treasuries. This feature empowers users to send funds globally, hold assets securely, and protect themselves against market volatility. Additionally, users can withdraw their USDC and receive physical cash in their local currency at any participating MoneyGram location.
By adopting the Stellar Development Foundation’s SEP-24 protocol, MoneyGram gained direct access to the Stellar network and its extensive ecosystem. This integration opened doors to new user bases for MoneyGram, while wallets and applications supporting Stellar were able to tap into MoneyGram’s vast retail network. Consequently, users gained the ability to deposit or withdraw cash from their wallets via USDC on Stellar, all without the need for a traditional bank account.
With MoneyGram Access, individuals now have the option to perform cash-to-crypto transactions at participating MoneyGram locations. Users can “cash-in” by converting physical cash into USDC at their chosen MoneyGram location, or “cash-out” by withdrawing USDC and receiving physical cash in their preferred local currency. This innovative solution eliminates the barriers faced by the unbanked and underbanked populations, ensuring equitable access to digital financial services.
Recognizing the concerns of the unbanked and underbanked regarding the volatility of cryptocurrencies, MoneyGram strategically chose to leverage USDC on the Stellar blockchain. By combining a thoroughly-audited fiat-backed stablecoin with Stellar’s optimized network, MoneyGram provides secure, quick, and affordable payment options. Transaction fees are negligible, enabling swift and cost-effective value transfers.
MoneyGram Access has made a significant impact since its launch. With support for cash-out off-ramps in over 180 countries and a network of 300,000 locations, the solution has demonstrated its scalability and widespread adoption. Additionally, MoneyGram has successfully integrated MoneyGram Access with four wallets, expanding its reach and user base.
This cash-to-crypto use case is just the beginning of a transformative era in global finance. The versatility of MoneyGram Access holds immense potential for urgent use cases worldwide, such as cash-based aid disbursements powered by Stellar Aid Assist. The partnership between MoneyGram and Stellar has paved the way for greater financial inclusion, granting individuals in cash economies access to a broader range of financial services.
Empowering Financial Inclusion through Blockchain MoneyGram’s collaboration with Stellar blockchain has revolutionized global payments and facilitated financial inclusion on an unprecedented scale. MoneyGram Access has bridged the gap between traditional cash-based economies and the rapidly expanding world of digital finance. As blockchain continues to reshape the financial landscape, innovative solutions like cash-to-crypto transactions will empower individuals worldwide and foster a more equitable global financial system.
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