MoneyGram International Inc. (MGI - Free Report) has inked a partnership agreement with a leading Romanian payment services company, Payzone Romania. Pursuant to the deal, MoneyGram will provide money transfer services throughout the country with the help of Payzone Romania.
Through more than 11,000 terminals, Payzone Romania, the local payment service provider offers a number of payment services and electronic recharge services. Through its alliance with the company, MoneyGram will reach out to customers at hundreds of Playzone locations and provide money transfer services. By the end of 2013, MoneyGram services are expected to be provided at more locations.
The tie up between the companies will provide a fast, cost-effective, reliable and competent money transfer facility to the customers who do not have or use a bank account or credit card to transfer funds. Therefore, MoneyGram intends to tap this opportunity and move ahead with the objective to ramp up its global business network.
In the last reported quarter, MoneyGram’s global agent network increased 15% to 327,000 global locations, and the compnay is committed to expand its global business locations further. Towards this end the company previously signed an agreement with two postal services providers in Africa in Jul 2013 to provide money transfer services in the region. The postal service providers are Uganda Post Limited (Posta Uganda), and Tanzania Posts Corporation (Posta Tanzania).
However, increasing debt levels and a weak cash position remain matters of concern for the company. Currently we have a Zacks Rank #4 (Sell) on the company. Among others in the industry, favorable names include Moody’s Corp. (MCO - Free Report) , CIT Group Inc. (CIT - Free Report) and SS&C Technologies Holdings Inc. (SSNC - Free Report) . These companies carry a Zacks Rank #2 (Buy).