On Tuesday, shares of MoneyGram rose by more than 100%.

This week, the payment company MoneyGram announced it is partnering with the cryptocurrency company Ripple. As part of the deal, Ripple will invest $30 million in MoneyGram for a 10% stake in the company.

Ripple has the right to buy an additional $20 million in stock over the next two years. And Ripple will pay $4.10 per share, which is much higher than what the stock is currently worth.

Details about the partnership

Obviously, this gave investors a lot to be excited about. The company’s stock soared as high as $3.70 per share before settling at $2.92 per share. Even after the drop, this is still an increase of more than 100%.   

This deal comes at a good time for MoneyGram and could give it the momentum it needs. MoneyGram has struggled ever its failed merger with the Chinese company Ant Financial.

In 2017, the company attempted to sell itself to Ant Financial for $1.2 billion but the U.S. blocked the merger.  The company’s stock has tanked by more than 80% in the past year.

Ripple already has a number of payment partners but this is the first time it has made a major investment in a publicly traded company. If this partnership is successful, Ripple could help MoneyGram improve its international business transactions.

Ripple is investing in MoneyGram to launch its cryptocurrency, called XRP. MoneyGram will use the currency for cross-border transactions and other payment operations. Ripple claims that its blockchain technology makes it easier and cheaper to digitally trade currencies.

Final thoughts

The digital payments industry seems like it will be a profitable and growing industry in the coming years, with companies like Facebook looking to enter this market. MoneyGram already serves more than 200 countries and has processed more than $600 global transactions.

MoneyGram’s current customers shouldn’t see any difference in the service they’re currently receiving. According to Ripple CEO Brad Garlinghouse, this partnership will allow MoneyGram to focus on improving its operations and transform its cross-border payments.