A rumor coming true? Wow! Thought that only happened in Hollywood. But NO, it happens in the business world too. There has been “chatter” for quite some time that Western Union (money transfer company) has been evaluating the blockchain by using Ripple’s crypto technology. Western Union is especially interested in the settlement processing and optimization of working capital and also in regulation in the compliance sector of blockchain’s capabilities. Obviously the blockchain allows faster transactions and lower costs which is essential in the fast changing worldwide money transfer/payment arena. Typically Western Union has a lot of working capital tied up since using pre-funded accounts are used to make sure customers transfers are fulfilled. Ripple’s blockchain technology could move that money much faster and cheaper which saves Western Union………a lot (P.S……. shareholders.investors like that). Good luck with the testing and making rumors come true.
(Bill Taylor/Managing Editor)
“Western Union’s long-rumored relationship with Ripple is turning out to be real.
After more than a month of speculation, the money transfer company said it’s evaluating blockchain technology and is testing transactions with Ripple, the San Francisco-based startup behind the cryptocurrency of the same name.
“We are looking especially in the processing settlement and working capital optimization, also in the regulation part, on the compliance part on the blockchain capabilities,” Western Union Chief Executive Officer Hikmet Ersek said on a conference call after the company reported results Tuesday. “And we do test, we do have some tests with Ripple.”
Money-transfer businesses such as Englewood, Colorado-based Western Union typically use pre-funded accounts to fulfill customers’ transfers, which can tie up capital. Ripple’s blockchain technology and digital currency XRP could move money faster, which has helped propel a more than 33,000 percent surge in the digital token last year even though the coin isn’t essential for handling payments…”