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Moneygram ODL but highest fees?


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So, out of curiosity I was looking at the fee calculation on Moneygrams website and was a little bit surprised.

Something doesnt add up here and maybe someone has an explanation.

As it is known Moneygram is using ripples ODL for specific corridors, saving them a lot of costs for remittances.

Yet the customer fees for transferring lets say 1k USD to PHP are even higher than WU or Transferwise.

How can that be? Claiming to save costs, but not being able to beat competitors?

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I'm building a website to calculate the costs of transferring money via ODL from Bitstamp to Bitso (USD -> XRP -> XRP -> MXN), but unfortunately it is not really ready to put it up for public

Howdy Q I've been (on and off) working on something similar, logging my progress in another thread. I've noticed the baseline cost of just the slippage ranging from 1.8 % to 0.12 % for amoun

Another thing is just because they are using ODL doesn't mean that 100% of transactions are moving through ODL. I don't have the link off hand, but I think it was only 1% of their transactions to thos

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56 minutes ago, superboon said:

So, out of curiosity I was looking at the fee calculation on Moneygrams website and was a little bit surprised.

Something doesnt add up here and maybe someone has an explanation.

As it is known Moneygram is using ripples ODL for specific corridors, saving them a lot of costs for remittances.

Yet the customer fees for transferring lets say 1k USD to PHP are even higher than WU or Transferwise.

How can that be? Claiming to save costs, but not being able to beat competitors?

Greed, stupidity or both.

Just because they have reduced costs in the back end, doesn't mean they will pass these on to the consumer.

It could also be the case that ODL isn't providing the level of savings Ripple would have everyone believe.

Edited by KevClem
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Another thing is just because they are using ODL doesn't mean that 100% of transactions are moving through ODL. I don't have the link off hand, but I think it was only 1% of their transactions to those corridors. Please correct me if you know the actual numbers. Another thing Moneygram is doing is transitioning to VISA-something (cross boarder solution, again can't remember the exact name), in order to reduce overhead costs. In short yes moneygram is using XRP, but not to the extent that overall it is lower the cost of transactions to warrant a reduction in the fees.

I don't understand moneygram's intention on having the highest fees. With the capability of customers to utilized whomever they choose using the internet, the number of people they can target with those high fees would be the few that do not access to the internet. It seems like they are missing out on a lot of customers. I hope they change their ways in order to become competitive.

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2 hours ago, KevClem said:

Greed, stupidity or both.

This is a typical antagonistic-to-XRP,  unthinking,  simplistic response.  There are other possibilities and it isn’t hard to understand the true situation.

They only have a small percentage of a small number (maybe only one) corridor operating on ODL.  If you think that should lower their overall costs then business isn’t your strong suite.

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2 hours ago, KevClem said:

Greed, stupidity or both.

Just because they have reduced costs in the back end, doesn't mean they will pass these on to the consumer.

It could also be the case that ODL isn't providing the level of savings Ripple would have everyone believe.

The 70% they quote is probably under idealistic situations. ODL isn't magically going to make Moneygram outcompete Western union.

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Check the exchange rate....last time I looked moneygram charged 4.99 and western union was free.....however it cost you less overall to use moneygram.....look at the exchange rates....last time I looked was a few months ago....but WU appeared to have lower fees until you factor in the exchange rate ......then you find that dollar for dollar cheaper to use moneygram.

 

just looked again...WU is currently cheaper for PI.....by a small amount...my guess is this is more about business competition.....TBD

 

 it still a speed component or debt cards from MG in minutes....WU 0-1days

 

2C450663-3ACC-4D48-868C-BFD12B7DDBEF.png

Edited by Vvittin
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1 hour ago, Tinyaccount said:

This is a typical antagonistic-to-XRP,  unthinking,  simplistic response.  There are other possibilities and it isn’t hard to understand the true situation.

They only have a small percentage of a small number (maybe only one) corridor operating on ODL.  If you think that should lower their overall costs then business isn’t your strong suite.

Sorry,  your incorrect on your assumptions again. 

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26 minutes ago, opaopa said:

There is a reason that Ripple literally had to buy part of moneygram to get them to use ODL. It's not saving Moneygram any money in the corridors current state.

Are you sure about that?  Do you have any evidence?  Because their CEO has said he wants more corridors and more throughput.  That would seem at odds with your claim.

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