In order to strengthen its foothold in Russia, MoneyGram International Inc. (MGI - Free Report) has inked a deal with one of the leading mobile phone retailers in Russia – MTS. The transaction is a product of an earlier collaboration between MoneyGram and RNKO Payment Center.
Pursuant to the deal, MoneyGram will provide money transfer services at all MTS stores across the nation. MoneyGram currently has a presence in more than 334,000 locations across the world including retailers, international post offices and financial institutions. The deal will help Russian as well as foreign citizens to transfer money to friends and family at any of these locations conveniently, without visiting a bank.
The 2008 collaboration between MoneyGram and RNKO Payment Center has led many Russian banks to provide money transfer services through MoneyGram. As per a report on Global Money Remittance Industry-Performance and Forecast 2016, published by Ken-Research in 2012, Russia is one of the countries expected to hold a leading position in the global remittance market. The association with MTS will increase the number of agent locations for MoneyGram in Russia, thereby expanding its operations in the nation and help it to capitalize on the opportunities offered by the market.
This well-known money transfer entity provides its services in nearly 200 countries and territories across the globe. It also provides bill payment services in the U.S. and Canada. So far in 2013, overall money transfer revenue growth as reported by MoneyGram was 12.5%. The aforementioned deal should enhance revenue growth further by increasing the Russian client base of the company and thereby bolstering growth. Overall long-term expected earnings growth rate for this stock is 13.9%.
MoneyGram currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include Euronet Worldwide Inc. (EEFT - Free Report) , CapitalSource Inc. and Cielo SA . While Cielo and Euronet carry a Zacks Rank #1 (Strong Buy), CapitalSource holds a Zacks Rank #2 (Buy).