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MoneyGram (MGI) Boosts Presence in Canada Via Tie-Up Renewal

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MoneyGram International, Inc. (MGI - Free Report) recently announced the expansion of its long-standing relationship with Canada Post for another five years. MoneyGram and Canada Post have been working closely for nearly 20 years, and have been equipping their mutual customers with hassle-free money transfers across the globe.

The renewed alliance, which is valid till December 2025, eases not only global money transfers but also paying bills at more than 5,000 Canada Post locations across Canada for MoneyGram customers. The same facilities can also be availed via the digital platform of and MoneyGram’s mobile app.

It is worth mentioning that the company’s online platform has positioned MoneyGram well for long-term growth, as indicated by the 11th consecutive month of triple-digit cross-border transaction growth in the direct-to-consumer digital business in November.

Coming back to the latest move, MoneyGram was the preferred partner for Canada Post, courtesy of its robust API-driven platform, enhanced customer-centric capabilities and strategy of teaming up with leading brands to render money transfer services across every corner of the world.

Moreover, the above-mentioned move reflects MoneyGram’s intensifying focus on the Canadian market, which has been home to several immigrants for quite a long time. Per Statista, the present annual immigration in Canada stands at nearly 300,000 new immigrants. The market research firm also presented that immigrants who have been permanently residing in Canada represented around 21.5% of the country’s total population as of 2019.

Shares of this Zacks Rank #3 (Hold) company have surged 183.1% over a year against the industry’s 21.9% decline. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Furthermore, MoneyGram unveiled another renewal of partnership with the world's largest retailer - Walmart. This three-year extension of their relationship was announced this October.

The company has been undertaking partnerships and technological advancements in a bid to enhance the digital services suite. Here are some notable examples of its alliances: It partnered with PayMaya Philippines this October to launch a digital capability for enabling customers to send money from the United States to the Philippines through Visa Direct - Visa's real-time push-payment solution. In August, MoneyGram tied up with four mobile wallet and fintech payment providers for strengthening foothold in Africa via its mobile wallet capabilities.

A strong digital arm helped the company to capitalize on the COVID-19 crisis, thanks to increased adoption of digital transactions as people were compelled to send money abroad to aid their families residing elsewhere.

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) .

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