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MoneyGram Drives Digital Platform Via Tie-Ups & Investments

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MoneyGram International Inc. MGI remains well-poised for growth, given its constant efforts to boost its digital platform through strategic partnerships. During the first quarter of 2018, MoneyGram undertook business restructuring and reorganization program as part of its Digital Transformation initiative, which we believe, would uplift its margins in the long run.

Active partnerships over the past few quarters have helped MoneyGram grow substantially. The company, known for its innovative money transfer services, has recently collaborated with Zeepay, a mobile financial services company to enable customers worldwide to send money directly to more than 11 million mobile wallets in Ghana.

Moreover, its tie-up with OXXO convenience stores in Mexico helped customers in that region avail of the facility of receiving money sent from across the globe by thousands of new locations. The company has also renewed its agreement with UK Post Office to provide money transfer services through 2021. Additionally, MoneyGram’s partnership with GCash deserves special mention via which, users around the world can send money to more than 10 million GCash mobile wallets in The Philippines at any time of the day.

Its alliance with Ripple will allow it to use cryptocurrency for expediting its remittance settlement time and lowering money transfer costs. Also, the deal helps it increase the company’s global treasury operations as well as improve customer relations with better services.

Revenues grossed from the development of the company’s digital or self-service platform have been rising consistently since 2013. Its investment in innovative products and services, particularly Digital/Self-Service solutions such as, mobile solutions, account deposit and kiosk-based services, has boosted the top line and diversified the product portfolio as well. Expansion of the company’s digital solutions through wallets and account deposits emerges as part of its strategic plan.

The above-mentioned investments will make MoneyGram a digitally enabled customer-centric organization.

Stocks That Warrant a Look

Stocks in the same sector that deserve a glance are On Deck Capital, Inc. , Cardtronics plc CATM and Euronet Worldwide, Inc. EEFT.

On Deck Capital operates as an online platform for small business lending in the United States, Canada and Australia. The company has managed to come up with positive results in three of the trailing four quarters with an average positive surprise of 58.34%.

Cardtronics provides automated consumer financial services through its network of automated teller machines and multi-function financial services kiosks. It managed to pull off an average four-quarter earnings surprise of 40.92%.

Euronet Worldwide, Inc. provides payment and transaction processing plus distribution solutions to financial institutions, retailers, service providers and individual consumers, worldwide. The company delivered an average trailing four-quarter beat of 0.38%.

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