MoneyGram announced a collaboration with the ATM provider Coinme that will approximately double the number of physical locations where people can invest in Bitcoin in the United States. The announcement made on Wednesday aims to let people trade in Bitcoin at Moneygram's physical kiosk.
The Chief Executive Officer of MoneyGram, Alex Holmes, said
“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.”
The partnership increases the use of Bitcoin by immigrant and unbanked communities.
MoneyGram adds digital currency to service to around 12,000 locations at the beginning of this month, while another 5,000 locations in June.
As per the latest data, MoneyGram has issued 20,000 of its outlets in mid-Wednesday and plans to offer Bitcoin by the second half of the year.
The main factor that fascinates the partnership between the two is that it involves a tie-up between a company. MoneyGram specializes in the oldest financial technologies i.e., wire transfers. While another one specializes in one of the latest forms of money.
Bergquist predicted that
“Bitcoin will grow in popularity as a way for immigrant diasporas to send money to relatives in their home countries. For this, the MoneyGram partnership is a natural fit since it has long been a popular option for remittances.”
Bergquist added that
“millions of Americans prefer to transact only in cash or are "unbanked," meaning they lack access to traditional financial establishments for a number of reasons.”
This amalgamation of old and new finance is strengthened by how the Bitcoin purchases will work in reality. Also, as the customer base increases, there will be more Coinme application downloads, which in turn obtain a quote to trade a certain amount of Bitcoin. If the quote is accepted, the consumer receives a code that is verifiable for five minutes, and MoneyGram will then validate the transaction.