MoneyGram International, Inc. (MGI - Free Report) launched its online platform in Ireland, Poland, Sweden, Norway and Denmark. This is part of its strategic move for expanding its global digital reach. Users can now send money to above two billion bank accounts and mobile wallets or to any MoneyGram location across more than 200 countries and territories. Remittance facility via MoneyGram online can be currently availed of by residents across 15 countries, including Australia, Austria, Belgium, Denmark, France, Germany, Ireland, Netherlands, Norway, Poland, Portugal, Spain, Sweden, the UK and the U.S. It offers attractive and user-friendly features like ability to search convenient locations, checking transaction status and estimating the transfer fees.
With this portfolio boost, the company intends to enhance its digital channels that would complement its extensive agent network. This is also for enriching customer experience by providing the same with more options for sending funds. The company expects to continue with its digital expansion move, which in turn, will help it gain a strong position in the evolving and competitive digital market.
The company foresees a huge growth opportunity in digital payments, which are being increasingly used in this tech age. Per a report by the World Bank’s Findex, the percentage of users opting for online transactions across the globe rose 11% from 2014 to 2017. MoneyGram has been witnessing a fair share of revenues from its digital platform, which has been constantly increasing since 2013.
It invested in innovative products and services portfolio. The line-up includes mobile solutions, moneygram.com, account deposit and kiosk-based services, which would further help boosting the company’s revenues. Its is also working on its mobile app upgrade and other alike programs. This will further enable it to emerge as a digitally enabled customer-centric organization.
Earlier this year, MoneyGram commenced a business restructuring and reorganization program as part of its Digital Transformation initiative. The program reflects the organization’s alignment with the delivery of new digital touch-points for customers and agents as well as the maturity of its global agent model. It incurred a capex of $12.8 million during the first half of 2018 for the same. This will further likely aid the company’s revenues derived from digital channels.
Shares of this Zacks Rank #2 (Buy) company have lost 5.1% in the past three months, slightly wider than the industry’s decline of 4.9%.
Other Stocks to Consider
Investors interested in the miscellaneous services industry might take a look at a few other top-ranked stocks like Euronet Worldwide, Inc. (EEFT - Free Report) , FedNat Holding Company (FNHC - Free Report) and TCG BDC, Inc. (CGBD - Free Report) .
Euronet provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers worldwide. The company carries a Zacks Rank of 2. It came up with an average four-quarter positive surprise of 0.38%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FedNat and its subsidiaries engage in insurance underwriting, distribution and claims processing business in the United States. The company has a Zacks Rank #3 (Hold) and delivered an average trailing four-quarter beat of 31.84%.
TCG BDC is a non-diversified closed-end investment company and it holds a Zacks Rank of 3. It managed to pull off an average four-quarter earnings surprise of 5%.
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