MoneyGram, a money transfer company, has received $11.3 million from , a blockchain-based payments startup, in the second half of 2019.
The company’s recent quarterly filings with the Securities and Exchange Commission (SEC) show that the funds were received in two quarters – $2.4 million in Q3, 2019, and another $8.9 million in the next quarter.
Notably, the funds received in Q4 were not included in the quarter’s revenue calculation and was accounted for a contra expense in its operating cost.
“Revenue excludes $8.9 million of benefit from Ripple, which will be accounted for as a contra expense rather than revenue based on a recent consultation with the Securities and Exchange Commission,” MoneyGram noted in the filing.
Ripple made its first last June with $30 million and made a commitment of putting a total of $50 million. The blockchain startup also pumped in the payments transfer firm and though not specifically mentioned, the recent fundings are likely a part of that.
“MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities,” the filing noted.
Ripple currently holds around 10 percent of MoneyGram and is pushing the company to utilize its blockchain-based solution.
Indeed, MoneyGram is already using Ripple’s On-Demand Liquidity product running on XRP and also piloted money transfer using XRP in 2018.
A week quarter
Despite the incoming funding from Ripple, the payment transfer company has seen a week Q4, as the figures went down 6 percent compared to the same quarter in the previous year.
“Revenue was $323.7 million, a decline of 6% from the fourth quarter 2018,” the filing added.
Despite the decline in profits, MoneyGram Online service recorded a 39 percent growth in the same quarter driving this company’s service to receive an 113 percent growth in transaction demand and 53 percent growth in profits.