In an effort to modernize and better meet the needs of its customers, MoneyGram has partnered with the Stellar network, which has supported many of the company’s blockchain initiatives over the past five years. But the company has also started exploring other ecosystems: if Stellar remains a main partner, MoneyGram has also become a validator on Solana and Tempo. For MoneyGram, the immediate gain is not speculative crypto activity, but the replacement of old financial rails.
Today, cross-border settlement still largely depends on bank opening hours and weekday processing. According to Soohoo, the blockchain-based infrastructure enables real-time settlement around the clock, thereby reducing operational costs while improving customer experience.
“We believe that if we do it right, we can achieve all three of those goals,” he said, referring to the idea of helping customers save time, effort and money. Instant settlement also allows MoneyGram to reduce its back-office costs, savings that the company hopes to eventually pass on through lower prices. Currently, MoneyGram’s fees start at $1.89 and vary depending on the country you’re sending them to.
Soohoo doesn’t believe consumers need to understand the technology behind these improvements. He compared blockchain to the processors in Apple’s iPhone.
“I can’t tell you what processor is inside my iPhone,” he said. “I just know it’s faster.” Likewise, he argued, remittance customers care about whether the money arrives quickly and reliably, not whether it passes through a blockchain.
