MoneyGram’s Blockchain Strategy: Keeping Technology Invisible for Customers

MoneyGram’s Blockchain Strategy: Prioritizing Customer Experience

In a recent interview with CoinDesk, MoneyGram CEO Anthony Soohoo discussed the evolution of the company’s blockchain strategy, emphasizing a shift from initial experimentation to a comprehensive effort aimed at modernizing its global payments infrastructure.

Streamlining Cross-Border Payments

According to Soohoo, MoneyGram seeks to enhance the efficiency of cross-border payments via blockchain infrastructure. His vision is for the technology to improve remittance services by making them faster, cheaper, and more transparent, all while keeping the underlying technology invisible to users.

“What you’re always looking for is how to leverage technology to run your business more efficiently and effectively,” said Soohoo. The focus remains on delivering what customers want and how to meet those needs effectively.

Enhancing Speed and Cost-Effectiveness

MoneyGram serves roughly 60 million active customers, primarily those sending money abroad. Speed and cost are critical priorities; traditional cross-border transactions can take several days and are hindered by banking hours and multiple intermediaries.

Blockchain technology, according to MoneyGram, can streamline this process by allowing 24/7 settlements and minimizing operational costs, which they hope to eventually pass on to customers. The company’s fees currently start at $1.89, varying by destination country.

Strategic Partnerships and Diverse Ecosystems

In its quest for modernization, MoneyGram has collaborated with the Stellar network, which has been central to its blockchain initiatives over the past five years. The company is also exploring partnerships with other platforms, becoming a validator on the Solana network alongside its work with Stellar.

Stablecoin Development

Beyond traditional remittances, MoneyGram has developed its own stablecoin, MGUSD, intended for use within its payment system instead of targeting crypto traders or institutional investors. This infrastructure control, he assures, will enhance cost management and future product development.

“If someone’s sending money from MoneyGram to MoneyGram, why shouldn’t it be our own coin?” Soohoo argued.

Aiming for Financial Inclusion

Soohoo, who took the helm at MoneyGram 18 months ago, believes that the potential of blockchain and digital currencies is greater than he initially thought. He envisions a future where MoneyGram not only serves as a remittance service but also positions itself as a primary financial institution for underbanked customers.

The company aims to democratize access to finance, making its services more accessible. “Our goal would be to democratize finance for the MoneyGram customer,” he stated, indicating a broader ambition for the company’s blockchain application in the financial sector.