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MoneyGram (MGI) to Deepen Presence in Japan Via SBI Remit
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MoneyGram International Inc. has extended its existing partnership with SBI Remit Co., Ltd., one of its key partners in Japan, by three years. MoneyGram and SBI Remit have been partners for over a decade with the first pact signed in November 2010 to provide money transfer services through both digital and walk-in channels to their combined customer base.
SBI Remit expanded options for customers to deposit cash on to their Remit cards. Through services like this, customers in Japan will be able to send money back home through MoneyGram more conveniently. With complaints that bank remittances are too time consuming — even take over a week’s time for some international transfers — MoneyGram’s digital services will come in handy minus the waiting time that causes cash flow bottleneck.
The population of foreign-registered residents in Japan has been rising consistently over the past many years, which makes the country a wide remittance market for MoneyGram.
Also, SBI Remit is the best fit for MoneyGram, given its stronger presence in Japan. SBI Remit has tie-ups with several banks like Shimane Bank, Fukshima Bank, Chikuho Bank, Acleda Bank, Michinoku Bank for which it provides money transfer services. Last July, SBI Remit’s international money transfer exceeded yen 1 trillion.
Japan allowed companies to enter into money transfer services in 2010 but set a cap of 1 million yen in exchange. However, Japan is set to allow nonbank companies to handle money remittances of more than 1 million yen ($9,000), giving a breather to fintech startups from providing faster and cheaper services in an area dominated by the banking sector.
The Financial Services Agency will grant licenses for large-sum money transfers to the companies meeting capital requirements and other conditions. It aims to revise the existing legislation to let the services be applicable from mid-2021 at the earliest.
The extension of this partnership reflects MoneyGram’s intent to penetrate the Asia-Pacific zone further. The company also has services in New Zealand and Hongkong.
Last year, MoneyGram tied up with LuLu Financial Group to widen its footprint in the Asia-Pacific region. The company is also focusing on diversifying its revenue mix geographically.
MoneyGram’s 2020 top line was hurt by the COVID-19 pandemic while revenues in the earlier years (2017-2019) were hit by a stiff competition in the U.S.-to-U.S. market. However, things seem to be looking up for the company’s digital platform, which is now contributing strongly to its top line.
In 2020, MoneyGram reported growth in transactions, driven by MoneyGram Online cross-border digital transaction growth of 152% along with the recovery of the company’s retail business in many markets. We note that the company’s money transfer revenues were up 12.2% year over year in the third and the fourth quarter of 2020, reflecting the gradual pick-up in its top-line growth. For the first quarter of 2021, the company expects revenues to be approximately $300 million, up 3% year over year.
Year to date, the stock has gained 10.9% compared with its industry’s growth of 1.9%.
Other players in the same space, namely Western Union Co. (WU - Free Report) , Square Inc. (SQ - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) have also risen 2.5%, 7.9% and 5.3%, respectively, over the same time frame.
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Image: Bigstock
MoneyGram (MGI) to Deepen Presence in Japan Via SBI Remit
MoneyGram International Inc. has extended its existing partnership with SBI Remit Co., Ltd., one of its key partners in Japan, by three years.
MoneyGram and SBI Remit have been partners for over a decade with the first pact signed in November 2010 to provide money transfer services through both digital and walk-in channels to their combined customer base.
SBI Remit expanded options for customers to deposit cash on to their Remit cards. Through services like this, customers in Japan will be able to send money back home through MoneyGram more conveniently. With complaints that bank remittances are too time consuming — even take over a week’s time for some international transfers — MoneyGram’s digital services will come in handy minus the waiting time that causes cash flow bottleneck.
The population of foreign-registered residents in Japan has been rising consistently over the past many years, which makes the country a wide remittance market for MoneyGram.
Also, SBI Remit is the best fit for MoneyGram, given its stronger presence in Japan. SBI Remit has tie-ups with several banks like Shimane Bank, Fukshima Bank, Chikuho Bank, Acleda Bank, Michinoku Bank for which it provides money transfer services. Last July, SBI Remit’s international money transfer exceeded yen 1 trillion.
Japan allowed companies to enter into money transfer services in 2010 but set a cap of 1 million yen in exchange. However, Japan is set to allow nonbank companies to handle money remittances of more than 1 million yen ($9,000), giving a breather to fintech startups from providing faster and cheaper services in an area dominated by the banking sector.
The Financial Services Agency will grant licenses for large-sum money transfers to the companies meeting capital requirements and other conditions. It aims to revise the existing legislation to let the services be applicable from mid-2021 at the earliest.
The extension of this partnership reflects MoneyGram’s intent to penetrate the Asia-Pacific zone further. The company also has services in New Zealand and Hongkong.
Last year, MoneyGram tied up with LuLu Financial Group to widen its footprint in the Asia-Pacific region. The company is also focusing on diversifying its revenue mix geographically.
MoneyGram’s 2020 top line was hurt by the COVID-19 pandemic while revenues in the earlier years (2017-2019) were hit by a stiff competition in the U.S.-to-U.S. market. However, things seem to be looking up for the company’s digital platform, which is now contributing strongly to its top line.
In 2020, MoneyGram reported growth in transactions, driven by MoneyGram Online cross-border digital transaction growth of 152% along with the recovery of the company’s retail business in many markets. We note that the company’s money transfer revenues were up 12.2% year over year in the third and the fourth quarter of 2020, reflecting the gradual pick-up in its top-line growth. For the first quarter of 2021, the company expects revenues to be approximately $300 million, up 3% year over year.
Year to date, the stock has gained 10.9% compared with its industry’s growth of 1.9%.
Other players in the same space, namely Western Union Co. (WU - Free Report) , Square Inc. (SQ - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) have also risen 2.5%, 7.9% and 5.3%, respectively, over the same time frame.
Money Gram carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong BUy) stocks here.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>