MoneyGram Q1 earnings report: Ripple paid $ 16.6 million in incentive funds

On May 1st, Ripple partner MoneyGram released its first quarter earnings report. The financial report shows that MoneyGram’s net profit in the first quarter of 2020 was -21.5 million US dollars, a year-on-year decrease of 59.26%; operating income was 299.9 million US dollars, a year-on-year decrease of 7.77%. In addition, MoneyGram’s total operating expenses were US $ 277.8 million, including Ripple market development costs of US $ 16.6 million, partially offset by related-party transactions and transaction costs of US $ 4.5 million. This means that Ripple paid $ 16.6 million in incentive funds to MoneyGram in the first quarter of 2020, which is higher than the $ 11.3 million paid to MoneyGram in the third and fourth quarters of 2019. These incentive funds are paid in the form of XRP. MoneyGram previously issued a statement saying that, according to the recommendations of the US Securities and Exchange Commission, the incentive funds paid to it by Ripple are classified as allowance expenses in operating expenses. MoneyGram claims that the XRP token compensates MoneyGram for developing the foreign exchange market and bringing liquidity, and provides a reliable level of foreign exchange trading activities.