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MoneyGram consumers throughout the United States would soon be able to purchase Bitcoin at the company’s retail locations in the nation.
MoneyGram is due to join the list of mainstream payment processing providers who have adopted cryptocurrency.
In a statement released on Wednesday, the global payment provider unveiled an agreement with crypto exchange and Bitcoin (BTC) ATM operator Coinme Inc. to enable consumers in the United States to redeem their cryptocurrency reserves for cash at its point-of-sale locations around the nation.
As part of the announcement, MoneyGram also revealed that customers will be able to buy BTC and crypto in an expansion of the existing crypto-to-cash model pioneered by the almost 20,000 cryptocurrency ATMs around the world.
Commenting on the development, MoneyGram CEO Alex Holmes remarked:
“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 opportunity to purchase Bitcoin from MoneyGram’s brick-and-mortar retail stores may be a major breakthrough for would-be first-time crypto consumers who are intimidated by engaging with online cryptocurrency exchanges.
MoneyGram’s announcement is also likely to signal the possibility of a single money transmitting licencing system, especially for cryptocurrencies.
In September 2020, 48 U.S. states voted to create a common regulatory system for money transmitters — a development with major consequences for 78 fintech companies with annual revenues of $1 trillion, such as MoneyGram.
MoneyGram’s introduction of physical Bitcoin purchasing across its U.S. branches is just another example of fintech and payment processing companies opening up to cryptocurrencies. From PayPal to Visa and Mastercard, the introduction of some kind of crypto-related feature is becoming the standard across the industry.
PayPal started encouraging US customers to pay with Bitcoin through millions of online retailers on the site in March. PayPal CEO Dan Schulman said in April that the company’s crypto commerce was on track to cross $200 million in volume within a few months.