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MoneyGram (MGI) Boosts Coinme Partnership With 4% Stake

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MoneyGram International, Inc. (MGI - Free Report) recently announced a strategic minority investment in Coinme, a cryptocurrency cash exchange company. The investment move, following a Series A funding round, has given MoneyGram around 4% ownership stake in the crypto ATM operator.

The latest move bolsters MoneyGram’s partnership with Coinme. Last May, the two firms partnered to expand access to crypto-fiat exchanges. It created a crypto-to-cash model and thousands of U.S. retail locations to trade bitcoin. Further, the two companies have additional plans to strengthen their partnership.

The latest move is expected to fuel MoneyGram’s innovation efforts and position it well for using the blockchain technology. The growing partnership with the cryptocurrency company opens MGI’s business to a new client segment and diversifies its revenues sources. MGI’s massive global network and infrastructure, coupled with strategic investments, will likely enable the partnership to expand to international markets.

MoneyGram’s partnership with Coinme is a crucial one as it is targeted at enhancing the crypto ecosystem and reducing the gap between crypto and traditional finance. This is a growing space and MGI is expected to capitalize on the rising demand for crypto services. Several other major companies are also working hard to grab a share of this huge lucrative market.

Last month, Visa Inc. (V - Free Report) strengthened its partnership with Nuvei Corporation (NVEI - Free Report) to roll out crypto-friendly debit cards in Europe and reduce the fiat-crypto currency gap. The new cards will use the Visa Principal Membership and EMI license to serve clients by simply spending crypto anywhere Visa is received. The Simplex Banking will enable Nuvei to provide clients with a simplified fiat-to-crypto on-ramp and off-ramp process. It will help clients to use and spend crypto sales funds in a unified manner.

In July 2021, Mastercard Incorporated (MA - Free Report) collaborated with a series of crypto companies in a bid to unveil a card offering and offer seamless cryptocurrency conversion. Mastercard has been collaborating with cryptocurrency platforms to tap the growing number of consumers entering the crypto space. MA pursues continuous endeavors to offer seamless cryptocurrency wallets and exchange experience, which result in more consumers’ shift toward crypto cards for purchasing digital assets or incurring spending. Early November, Mastercard announced a partnership with Amber Group, Bitkub and CoinJar to provide crypto-funded Mastercard payment cards in the Asia Pacific region.

Price Performance & Zacks Rank

MoneyGram’s shares have risen 12.4% in the past year compared with the 16.9% rise of the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

MoneyGram currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.