Financial Giant Western Union Offers To Purchase Ripple Backed MoneyGram

Western Union, the payments giant, has recently extended an offer to acquire cross-border payments company MoneyGram, which is backed by US-based blockchain company Ripple. The development is first divulged by Bloomberg.

As per a recent article published on Bloomberg, the financial giant lately made a takeover offer for MoneyGram. It is to be noted that if the bid comes out to be successful, it would unite 2 of the prime money-transfer establishments in the United States.

Due to the coronavirus pandemic and subsequent lockdown across the United States, several businesses across the nation including MoneyGram are severely affected. As people stay at home, the number of digital transactions has increased. However, digital transactions account for only around eighteen percent of the company’s money transfers in the 1st quarter, as per Bloomberg.

Regardless of partnering with Ripple in 2019 for cross-border payments forex settlements, MoneyGram reported a weak 1st quarter for 2020.

At the time of reporting, MoneyGram has a market capitalization of around one hundred and fifty-five million USD. On the other hand, Western Union is valued at over eight billion USD.