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MoneyGram (MGI) Ties Up to Ease Remittance Receipts in Jamaica

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MoneyGram International, Inc. recently teamed up with the digital wallet app of Jamaica – Lynk which was introduced in December 2021 and is owned by the leading financial group of the country — National Commercial Bank Financial Group ("NCBFG").

The partnership makes way for MoneyGram to introduce the feature of receiving cross-border payments directly into smartphones for the rapidly expanding user base of Lynk. Jamaican consumers can start availing this speedier, seamless and secure digital alternative to receiving funds from their loved ones from all across the globe.

Inevidently, MoneyGram will be able to establish a strong foothold in the Caribbean country through its recent initiative of launching the first-ever international digital receive capabilities across Jamaica. Simultaneously, the tie-up with Lynk is likely to bolster the mobile wallet capabilities of MGI across several countries of the world that continues to witness significant remittance receipts. Also, the alliance complements its age-old endeavor of extending increased choice as well as flexibility to consumers around the globe.

MoneyGram seems prudent to partner with a mobile wallet app this time, considering the bundled benefits that such apps provide and the significant number of smartphone users in Jamaica. Also, the developer of Lynk oversees more than 60% of Jamaica’s payments market, which seems commendable. The app also exhibits potential, evidenced by the significant amount of transactions amounting to $9.8 million that the mobile wallet app witnessed in the very first year of its operations.

It was on the basis of such partnerships and substantial investments that MoneyGram could build a solid digital arm and global presence over the years. Several fintech consider MGI as one of the most trustworthy international money transfer organizations and remain intrigued to avail its vast global ecosystem to upgrade its service suite.

The growing adoption of digital means worldwide serves as a perfect ground for MoneyGram’s digital arm to capitalize on. Increased utilization of its money transfer services with partnerships similar to the latest one is likely to fetch higher money transfer revenues to the company, which accounts for a majority portion of its top line.  

MGI does not let go of any opportunity to upgrade its money transfer platform and its acquisition deal with Chicago-based private equity firm Madison Dearborn Partners (“MDP”) bears testament to the same. The buyout is likely to close either within the first quarter of 2023 or by the early second quarter. The acquisition is likely to leverage the proven payments expertise of MDP in solidifying the cross-border capabilities and digital platform of MoneyGram.  

Shares of MoneyGram have gained 3.1% in the past six months against the industry’s 6.4% decline. MGI currently carries a Zacks Rank #2 (Buy).

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