(Reuters) - Shares of MoneyGram International Inc (>> Moneygram International Inc) jumped 10.5 percent on Thursday, after the money-transfer company said it partnered with blockchain firm and bitcoin-rival Ripple.
As part of the arrangement, MoneyGram will test the use of Ripple's cryptocurrency, XRP, to move funds in a faster and cheaper way.
Ripple, created by the founder of bitcoin exchange Mt Gox, has risen 31,000 percent over the past year, overshadowing bitcoin's 1,200 percent increase.
XRP rose to $2.25 during trade on Thursday, according to coinmarketcap.com.
Many see it as a close contender to bitcoin, which is by far the biggest cryptocurrency with a market value of more than $250 billion. (http://reut.rs/2D0S11W)
XRP allows banks and payment companies to send money quickly, no matter the location. Its transaction fee, at just "fractions of a penny", is also comparable to bitcoin's $30 per transaction fee.
Several companies such as UBS (>> UBS Group) and Santander (>> Banco Santander) already use Ripple's products to enable payments. In November 2017, American Express Co (>> American Express Company) also launched an instant blockchain-based payment system using Ripple.
China's Ant Financial's deal to buy MoneyGram for $1.2 billion collapsed last week. (http://reut.rs/2D1nYqT)
(Reporting By Aparajita Saxena in Bengaluru; Editing by Saumyadeb Chakrabarty)