The leading global money transfer company, MoneyGram International Inc. (MGI - Analyst Report) joined hands with the Malaysian company TML. TML provides money transfer solutions through innovative products for remittance that are designed as per client requirements. The deal aims at strengthening MoneyGram’s footprint in Malyasia by allowing it to provide its services at TML locations across the nation.
Consumers across the globe are in need of convenient and safe money transfer options. Through the aforesaid agreement, MoneyGram intends to satisfy this requirement for consumers in Malaysia.
As per World Bank, remittances amounting to $7 billion flowed out of Malaysia in 2011. MoneyGram has been serving as a reliable money transfer entity in the eastern and western sides of the country. Now, the company is determined to expand its services in other regions as well, with the help of one of the fastest growing remittance companies in the country.
In Malaysia, many people depend on remittances for their daily requirements. The new alliance will expose them to more reasonable and fast money transfer services from a trustworthy and convenient customer service company. Now, these prospective customers can easily transfer funds by visiting any MoneyGram agent location, filling up a simple form and producing photo identification. The funds can be collected in as little as 10 minutes, subject to availability of agents and hours of operation.
Since inception, TML has had an average growth rate of above 30% in number and value of transactions per year. The association between the two companies and the ensuing growth in TML is expected to provide a wider platform for MoneyGram to offer its services in Malaysia.
Regarding business expansion, MoneyGram recently inked a deal with Chile’s portal system, CorreosChile pursuant to which it will provide money transfer services at more than 200 CorreosChile branches all over the country.
MoneyGram’s global agent locations increased 17% and money transfer transaction volume surged 11% over the prior year numbers, in the first quarter of 2013. The addition of TML to the growing agent network is expected to boost transaction volumes further in future. Additionally, money transfer revenues of the company increased 10% year over year to $294.3 million during the quarter. We expect the deal to bolster the client base of the company thereby helping MoneyGram write more business and improve revenues further.
MoneyGram currently carries a Zacks Rank #4 (Sell). Among others in the industry, FleetCor Technologies Inc. (FLT - Snapshot Report) carries a favorable Zacks Rank #1 (Strong Buy) while Moody’s Corp. (MCO - Analyst Report) and Euronet Worldwide Inc. (EEFT - Snapshot Report) carry a Zacks Rank #2 (Buy).