MoneyGram International Inc. (MGI - Free Report) announced a strategic alliance with the globally leading digital security provider – Gemalto – to offer money transfer solution on the latter’s LinqUs Mobile Money payment platform.
Accordingly, MoneyGram’s customers will now be able to transfer money from their mobile phones to any of the company’s 284,000 global locations in about 194 countries. The latest service will be aided by Gemalto’s LinqUs Mobile Money digital wallet solution, which will be assimilated with MoneyGram’s money transfer platform.
The LinqUs Mobile Money helps its clients gain accesses to their bank accounts through mobile phones, while alsomake bill payments and also facilitate person-to-person transfers.
On the other hand, the clients of Gemalto Mobile Financial Services, including more than 3,000 financial institutions and over 450 mobile operators in about 43 countries, will now connect to MoneyGram’s global network directly. These convenient and secure mobile remittance service offerings blend well with the need of the time that warrants safe, easy and quick accessibility of money globally.
Both the entities aim to collaborate and form an extensive network to tap the unbanked and underbanked regions of the underdeveloped and developing economies as well. The alliance also lays out the possibilities of secure cross-border remittances.
MoneyGram continues to explore new growth avenues in untested locations by incorporating latest and flexible technology that facilitates transfers through mobile phones, prepaid cards or ATMs, in order to speed up its money transfer services and enhance the remittance volumes. This growth strategy also justifies management’s guidance of 7–9% top-line growth for 2012.
The aggressive business developments are also boosting MoneyGram’s competitive edge, particularly against the steady global growth of its arch-rival Western Union Co. (WU - Free Report) , which recently announced its foray into untapped markets of Myanmar through an alliance with the Myanmar Oriental Bank.
MoneyGram carries a Zacks Rank #3, which translates into a short-term Hold rating and a long-term Neutral stance.