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MoneyGram (MGI) Reports 11th Monthly Gain in Digital Business
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MoneyGram International, Inc. recently reported strong cross-border transaction as well as revenue growth in its direct-to-consumer business named MoneyGram Online (MGO). Its online platform has been gaining traction from strong customer demand, driven by its digital capabilities.
MoneyGram delivered 136% year-over-year cross-border transaction growth and 135% year-over-year revenue growth for November in its direct-to-consumer digital business MoneyGram Online (MGO). However, this upside was lower than 150% year-over-year cross-border transaction and revenue growth for October in its MGO business.
With its cross-border business gain in November, MoneyGram's business momentum witnessed the 11th consecutive month of triple-digit cross-border transaction growth in its direct-to-consumer digital business, MoneyGram Online.
Following the COVID-19 outbreak, the company’s digital transactions got an added impetus as more customers opted for digital channels to make their payments. This is clearly evident from the revenue rise of 4% in the money transfer business, which was mainly driven by the company’s digital business.
A robust digital arm bodes well for MoneyGram as its revenues have been declining since 2017 through the first nine months of 2020. Revenues have been affected by a higher compliance control strategy and stiff competition.
The company began laying the groundwork for its digital transformation four years ago to embrace the rapid changes brought about with the expansion of technology in the remittance industry. Its consumer direct channel MGO is the largest component of its overall digital business and a steady catalyst for customer acquisitions. Consumer demand for the company’s mobile app has been skyrocketing for a while now and 85% of its online transactions is currently carried out on mobile devices. This business continues to be a significant driver of profitability as the company is quickly scaling it up.
With the coronavirus outbreak, the company also saw a striking shift in the origination of transactions. Notably, its digital transactions represent 27% of the total money transfers and its global MGO business is the single largest originator of the same.
Via its digital business, the company is exploring new geographies and continuously wooing a completely new customer base.
As several fintech players like PayPal Holdings, Inc. (PYPL - Free Report) , Square, Inc (SQ - Free Report) and others offering similar services at affordable rates, competition for MoneyGram naturally intensified over all these years. Its close peer Western Union Co. (WU - Free Report) is also facing the same rivalry and has been pursuing technological investments to stay ahead of the race.
Year to date, the stock has soared 185% against its industry’s decline of 19.4%.
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
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MoneyGram (MGI) Reports 11th Monthly Gain in Digital Business
MoneyGram International, Inc. recently reported strong cross-border transaction as well as revenue growth in its direct-to-consumer business named MoneyGram Online (MGO). Its online platform has been gaining traction from strong customer demand, driven by its digital capabilities.
MoneyGram delivered 136% year-over-year cross-border transaction growth and 135% year-over-year revenue growth for November in its direct-to-consumer digital business MoneyGram Online (MGO). However, this upside was lower than 150% year-over-year cross-border transaction and revenue growth for October in its MGO business.
With its cross-border business gain in November, MoneyGram's business momentum witnessed the 11th consecutive month of triple-digit cross-border transaction growth in its direct-to-consumer digital business, MoneyGram Online.
Following the COVID-19 outbreak, the company’s digital transactions got an added impetus as more customers opted for digital channels to make their payments. This is clearly evident from the revenue rise of 4% in the money transfer business, which was mainly driven by the company’s digital business.
A robust digital arm bodes well for MoneyGram as its revenues have been declining since 2017 through the first nine months of 2020. Revenues have been affected by a higher compliance control strategy and stiff competition.
The company began laying the groundwork for its digital transformation four years ago to embrace the rapid changes brought about with the expansion of technology in the remittance industry. Its consumer direct channel MGO is the largest component of its overall digital business and a steady catalyst for customer acquisitions. Consumer demand for the company’s mobile app has been skyrocketing for a while now and 85% of its online transactions is currently carried out on mobile devices. This business continues to be a significant driver of profitability as the company is quickly scaling it up.
With the coronavirus outbreak, the company also saw a striking shift in the origination of transactions. Notably, its digital transactions represent 27% of the total money transfers and its global MGO business is the single largest originator of the same.
Via its digital business, the company is exploring new geographies and continuously wooing a completely new customer base.
As several fintech players like PayPal Holdings, Inc. (PYPL - Free Report) , Square, Inc (SQ - Free Report) and others offering similar services at affordable rates, competition for MoneyGram naturally intensified over all these years. Its close peer Western Union Co. (WU - Free Report) is also facing the same rivalry and has been pursuing technological investments to stay ahead of the race.
Year to date, the stock has soared 185% against its industry’s decline of 19.4%.
MoneyGram carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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These 7 were selected because of their superior potential for immediate breakout.
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