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MoneyGram Renews Ties With UK Post Office to Expand Services

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MoneyGram International, Inc. has extended its agreement with Post Office Limited to provide money transfer services inside thousands of UK Post Office locations through 2021.

Both companies have been teamed up to drive financial inclusion, providing convenient and reliable financial services to customers in one of the most diverse regions of the world for more than 20 years. The renewal of this collaboration shows their dedication and commitment to offer customers easier and better money transfer solutions.

Post Office’s 11,500 branches across the UK make it more convenient for MoneyGram customers to access a variety of services at any time and given location of their choice.

Remittance in the UK is a competitive market with trustworthy companies and active participation of both banks and money transfer operators. The regulatory environment in the UK is also encouraging competition. This market provides a range of services including traditional cash-to-cash products through agents as well as transfer to and from bank accounts along with online services. The remittance products are majorly based on contracts between international money transfer operators and payment service providers.

The money remittance industry in the U.K. has been growing from past many years and is expected to expand. This provides MoneyGram with a good business opportunity.

Some of the most solid players in the UK Remittance market are TransferWise, WorldRemit and Azimo. In the UK, Western Union (WU - Free Report) is facing major challenges posed by many well-capitalized upstart companies.

Shares of this Zacks Rank #3 (Hold) company have lost 0.9% quarter to date, narrower than its industry's decline of 4.1%.



Stocks to Consider

Investors interested in the miscellaneous services industry might take a look at two better-ranked stocks, namely Jefferies Financial Group Inc. (JEF - Free Report) and TCG BDC, Inc. (CGBD - Free Report) .

Jefferies is a financial services company, offering a range of products and services in investment banking, equities, fixed income and wealth management in the Americas, Europe and Asia. The company sports a Zacks Rank #1 (Strong Buy). It came up with an average four-quarter positive surprise of 5.13%, beating estimates in three. You can see the complete list of today’s Zacks #1 Rank stocks here.

TCG BDC is a non-diversified closed-end investment company and it holds a Zacks Rank #2 (Buy). It managed to pull off an average four-quarter earnings surprise of 9.52%.

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