We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MoneyGram's New Tie-Up to Bolster Presence in South Korea
Read MoreHide Full Article
MoneyGram International, Inc. recently collaborated with Global Money Express Co., Ltd (“GME”), which has emerged as a leading money transfer company in South Korea.
The partnership enables GME to have access to MoneyGram’s API-driven platform, which has a strong distribution network spanning across more than 200 countries and territories. Apart from offering enhanced services to its clients in South Korea, teaming up with MoneyGram is also likely to boost GME’s global payout coverage. Further, South Korean customers who send money to China and South Asia are likely to gain significantly from the new collaboration. Apart from benefiting GME, the tie up is likely to drive MoneyGram’s digital business as well.
In fact, this is not the first time that MoneyGram is partnering with leading Korean fintech companies. Last month, it tied up with another money transfer and payment fintech company in Korea — E9Pay. Notably, MoneyGram already has a strong presence in Korea given its alliances with Woori Bank, Shinhan Bank, Korea Post, Kyongnam Bank and Sentbe.
We believe these constant initiatives underline MoneyGram’s efforts to tap the South Korean remittance market, which is worth around $13.4 billion in annual remittance outflows per the World Bank.
Shares of this Zacks Rank #4 (Sell) company have gained 45.7% in a year against the industry’s decline of 16.2%.
MoneyGram’s Efforts Bode Well
The company, which facilitated digital transactions in over 70 countries, has always been striving to enhance its digital business on the back of partnerships and constant technological upgradations. Apart from South Korean remittance market, MoneyGram is also eyeing the remittance market in Saudi Arabia. The company’s tie-up with Al Rajhi Bank this month is testament to the same. Last month, it partnered with Uber Technologies, Inc. (UBER - Free Report) to enable hassle-free digital transactions for individuals working at Uber. These initiatives by MoneyGram are also time opportune as customers are increasingly opting for digitals channels for payment purposes amid the COVID-19 pandemic.
A robust digital business has enabled MoneyGram to witness record-breaking transaction growth in May amid the pandemic. Notably, it reported year-over-year digital transaction growth of100% in the month, compared with first-quarter 2020 where digital transactions improved 57% year over year. Strength of the company’s direct to consumer channel – MoneyGram Online, digital partnerships and increased account deposit and mobile wallet transactions primarily drove digital growth in May.
Notably per recent media reports, Western Union Co. (WU - Free Report) is offering to buy MoneyGram. If the deal materializes, it will secure MoneyGram’s position in the remittance market, which is anticipated to shrink due to the pandemic-induced financial turmoil. At the end of April, the World Bank projected a decline of 20% for global remittances in 2020. Therefore, to cope with the prevalent difficulty in the operating environment, the partnership with a stable company will be best suited for MoneyGram. This, in turn, will also provide it a competitive edge over peers like PayPal Holdings, Inc. (PYPL - Free Report) .
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
MoneyGram's New Tie-Up to Bolster Presence in South Korea
MoneyGram International, Inc. recently collaborated with Global Money Express Co., Ltd (“GME”), which has emerged as a leading money transfer company in South Korea.
The partnership enables GME to have access to MoneyGram’s API-driven platform, which has a strong distribution network spanning across more than 200 countries and territories. Apart from offering enhanced services to its clients in South Korea, teaming up with MoneyGram is also likely to boost GME’s global payout coverage. Further, South Korean customers who send money to China and South Asia are likely to gain significantly from the new collaboration. Apart from benefiting GME, the tie up is likely to drive MoneyGram’s digital business as well.
In fact, this is not the first time that MoneyGram is partnering with leading Korean fintech companies. Last month, it tied up with another money transfer and payment fintech company in Korea — E9Pay. Notably, MoneyGram already has a strong presence in Korea given its alliances with Woori Bank, Shinhan Bank, Korea Post, Kyongnam Bank and Sentbe.
We believe these constant initiatives underline MoneyGram’s efforts to tap the South Korean remittance market, which is worth around $13.4 billion in annual remittance outflows per the World Bank.
Shares of this Zacks Rank #4 (Sell) company have gained 45.7% in a year against the industry’s decline of 16.2%.
MoneyGram’s Efforts Bode Well
The company, which facilitated digital transactions in over 70 countries, has always been striving to enhance its digital business on the back of partnerships and constant technological upgradations. Apart from South Korean remittance market, MoneyGram is also eyeing the remittance market in Saudi Arabia. The company’s tie-up with Al Rajhi Bank this month is testament to the same. Last month, it partnered with Uber Technologies, Inc. (UBER - Free Report) to enable hassle-free digital transactions for individuals working at Uber. These initiatives by MoneyGram are also time opportune as customers are increasingly opting for digitals channels for payment purposes amid the COVID-19 pandemic.
A robust digital business has enabled MoneyGram to witness record-breaking transaction growth in May amid the pandemic. Notably, it reported year-over-year digital transaction growth of100% in the month, compared with first-quarter 2020 where digital transactions improved 57% year over year. Strength of the company’s direct to consumer channel – MoneyGram Online, digital partnerships and increased account deposit and mobile wallet transactions primarily drove digital growth in May.
Notably per recent media reports, Western Union Co. (WU - Free Report) is offering to buy MoneyGram. If the deal materializes, it will secure MoneyGram’s position in the remittance market, which is anticipated to shrink due to the pandemic-induced financial turmoil. At the end of April, the World Bank projected a decline of 20% for global remittances in 2020. Therefore, to cope with the prevalent difficulty in the operating environment, the partnership with a stable company will be best suited for MoneyGram. This, in turn, will also provide it a competitive edge over peers like PayPal Holdings, Inc. (PYPL - Free Report) .
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>