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MoneyGram (MGI) to Gain From Remittances Amid Holiday Season
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MoneyGram International, Inc. remains well-poised to benefit from the holiday season of this year, courtesy of a noticeable trend among customers of engaging in higher remittances.
The COVID-19 outbreak has induced economic uncertainties globally, ranging from job cuts to difficulties in meeting escalating healthcare expenses. Weak economy and fall in income tend to have a negative effect on the global remittances. Notably, the World Bank anticipates a decline of 14% in global remittance flows for the next year, which substantiates the same.
Nevertheless, one of the most notable trends witnessed amid the pandemic was increased adoption of digital transactions, as people were compelled to send money abroad to aid their families residing elswhere. Further, stringent lockdowns and social distancing measures undertaken to curb the virus spread had persuaded most people to resort to digital ways to send money. Also, families and friends have been eager to receive money through digital means.
As a result, MoneyGram has been able to capitalize on the coronavirus crisis, courtesy of its online platform. It is worth mentioning that the company has made significant investments as part of its digital transformation efforts following a constant strain on its revenues since 2017 and through the nine months of 2020.
Moreover, the company has left no stone unturned to enhance its digital services suite, on the back of partnerships and constant technological upgradations. These collaborations have enabled the company to serve various markets more efficiently and strengthened global foothold. Case in point, these alliances have led to digital transaction growth of 79% in the third-quarter 2020.
Some other companies active in the digital money remittance space include The Western Union Company (WU - Free Report) , PayPal Holdings Inc. (PYPL - Free Report) and Square Inc. (SQ - Free Report) .
Based on a strong digital arm, MoneyGram’s business in November witnessed the 11th consecutive month of triple-digit cross-border transaction growth in its direct-to-consumer digital business — MoneyGram Online (MGO). With its cross-border transaction growth of 136% year over year in November, MoneyGram remains optimistic about the robust performance of its money transfer business not only for fourth-quarter 2020 but also through the 2020 holiday season attributable to increased digital transactions.
A recent MoneyGram survey of its customers revealed that most of the participants intend to spend atleast the same amount in the coming holiday season that they had sent during the last year. The same survey also indicates that around 70% of respondents have resorted to send more money in this year compared to the 2019 level, particularly for addressing family needs, with food expenses taking the top spot followed by housing and healthcare expenses.
Several challenges inflicted by the pandemic could not hinder the growing adoption of digital transactions. The accelerated trend to adopt digital means, which has been observed in the remittance industry as a result of the pandemic, has been demonstrated further in the MoneyGram survey. Case in point, around 60% of participants have agreed that the pandemic has led them to increase usage of digital tools for sending money abroad.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
MoneyGram (MGI) to Gain From Remittances Amid Holiday Season
MoneyGram International, Inc. remains well-poised to benefit from the holiday season of this year, courtesy of a noticeable trend among customers of engaging in higher remittances.
The COVID-19 outbreak has induced economic uncertainties globally, ranging from job cuts to difficulties in meeting escalating healthcare expenses. Weak economy and fall in income tend to have a negative effect on the global remittances. Notably, the World Bank anticipates a decline of 14% in global remittance flows for the next year, which substantiates the same.
Nevertheless, one of the most notable trends witnessed amid the pandemic was increased adoption of digital transactions, as people were compelled to send money abroad to aid their families residing elswhere. Further, stringent lockdowns and social distancing measures undertaken to curb the virus spread had persuaded most people to resort to digital ways to send money. Also, families and friends have been eager to receive money through digital means.
As a result, MoneyGram has been able to capitalize on the coronavirus crisis, courtesy of its online platform. It is worth mentioning that the company has made significant investments as part of its digital transformation efforts following a constant strain on its revenues since 2017 and through the nine months of 2020.
Moreover, the company has left no stone unturned to enhance its digital services suite, on the back of partnerships and constant technological upgradations. These collaborations have enabled the company to serve various markets more efficiently and strengthened global foothold. Case in point, these alliances have led to digital transaction growth of 79% in the third-quarter 2020.
Some other companies active in the digital money remittance space include The Western Union Company (WU - Free Report) , PayPal Holdings Inc. (PYPL - Free Report) and Square Inc. (SQ - Free Report) .
Based on a strong digital arm, MoneyGram’s business in November witnessed the 11th consecutive month of triple-digit cross-border transaction growth in its direct-to-consumer digital business — MoneyGram Online (MGO). With its cross-border transaction growth of 136% year over year in November, MoneyGram remains optimistic about the robust performance of its money transfer business not only for fourth-quarter 2020 but also through the 2020 holiday season attributable to increased digital transactions.
Shares of this Zacks Rank #3 (Hold) company have soared 221.1% in a year against the industry’s decline of 22.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A recent MoneyGram survey of its customers revealed that most of the participants intend to spend atleast the same amount in the coming holiday season that they had sent during the last year. The same survey also indicates that around 70% of respondents have resorted to send more money in this year compared to the 2019 level, particularly for addressing family needs, with food expenses taking the top spot followed by housing and healthcare expenses.
Several challenges inflicted by the pandemic could not hinder the growing adoption of digital transactions. The accelerated trend to adopt digital means, which has been observed in the remittance industry as a result of the pandemic, has been demonstrated further in the MoneyGram survey. Case in point, around 60% of participants have agreed that the pandemic has led them to increase usage of digital tools for sending money abroad.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>