Ripple today announced a new partnership with MoneyGram, one of the world’s largest money transfer companies. As part of the agreement, MoneyGram will pilot XRP in their payment flows and also explore integration into Ripple’s ecosystem through xVia.

During the pilot, MoneyGram will utilize XRP, the native digital asset of the Ripple Ledger, with the aim to speed up payment flows through xRapid, Ripple’s solution for on-demand liquidity. XRP is an efficient digital asset for blockchain powered payments with transaction fees at just fractions of a penny. Also, the average transaction time for settlement for XRP is just two to three seconds.

Money transfer companies, like MoneyGram, allow people to safely and efficiently send cross-border payments to friends, families and business partners. The current model for these payments requires money transfer companies to use pre-funded accounts across the globe for sourcing liquidity.

“The inefficiencies of global payments don’t just affect banks, they also affect institutions like MoneyGram. Money transfer companies are incredibly important because they help people get money to their friends and loved ones,” said Brad Garlinghouse, CEO of Ripple. “We are excited about this pilot and a long-term strategic partnership with MoneyGram. By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information.”

Alex Holmes, Chief Executive Officer of MoneyGram, said, “Everyday blockchain technology is changing the norm and encouraging innovation. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid. We’re hopeful it will increase efficiency and improve services to MoneyGram’s customers.”