MoneyGram has partnered with popular U.S.-based cryptocurrency exchange, Coinme, to offer Americans the opportunity to convert cryptocurrencies into cash at its retail locations.
By combing MoneyGram’s API-driven payments platform and other features with Coinme’s exchange and custody technology, customers, especially ones that are interested in using bitcoin for the first time, will have easy access to thousands of new cryptocurrencies point-of-sale locations.
Although the service is currently not available, customers can start using it in the coming weeks at selected MoneyGram locations while provision for more countries and cryptocurrencies will be made available later on.
The two partners hope to increase the less than 20,000 cryptocurrency kiosks worldwide with the addition of more new point-of-sale locations to buy and sell cryptocurrency, thus increasing the accessibility of bitcoin and potentially other digital currencies. They also plan to expand the latest service to select international markets in the second half of 2021.
With regards to the latest deal, Alex Holmes, MoneyGram’s Chairman and CEO commented, “This innovative partnership opens our business to an entirely new customer segment as we are the first to pioneer a crypto-to-cash model by building a bridge with Coinme to connect bitcoin to local fiat currency.”
He continued, “Our unique, global network is an incredibly valuable asset, and we’re excited to open our platform to Coinme as we increasingly look to capture new growth by monetizing our network to new use-cases.”
The new deal with Coinme is not the first time MoneyGram is delving into crypto. In a recent development, the leading cross-border payments and money transfers company partnered with cryptocurrency startup Ripple.
The deal requires MoneyGram to use Ripple’s product, XRapid, and also the XRP coin as part of its day-to-day operations while the other party will acquire an 8%-10% stake in MoneyGram, that is $30 million worth of the company’s shares for $4.10.
