MoneyGram International, Inc. MGI has partnered with Digital Financial Services LLC, a joint venture between Etisalat and Noor Bank, a subsidiary of Dubai Islamic Bank.
Per the pact, millions of eWallet customers in UAE will be able to make cross-border money transfers in real time to friends and family in more than 200 countries and territories. MoneyGram’s vast network of mobile wallet operators, bank account deposit services and walk-in locations will facilitate this service.
eWallet is a digital payment service, which doesn’t require customers to have a bank account or credit or debit card to conduct digital payments. A valid Emirates ID and a UAE mobile number are sufficient to open an eWallet account.
eWallet’s safe, convenient and flexible payment solutions through its easy-to-use mobile app are a highly attractive proposition for users.
Registered users can avail of a gamut of services, such as send and receive money, transfer amounts to bank accounts, conduct merchant payments or pay bills.
eWallet services will be much sought after, given the current pandemic situation, which already prompted people to digital instead of opting for physical remittances. This strategic deal will also expand MoneyGram’s presence in UAE, which is the third largest outbound remittance country in the world.
A couple of days ago, MoneyGram announced its collaboration with Global Money Express Co., Ltd, a leading money transfer company in South Korea.
MoneyGram realizes the need for staying technologically updated in this fast-evolving world and to this end, the company launched its re-designed app in late 2018. The app already received a good response, which is evident from the 46% surge in mobile app downloads during the first quarter.
MoneyGram’s online customer retention rates are already much higher than the walk-in business, and despite, a high-base retention rate continued to improve. Strong customer wins and higher number of transactions further accelerated growth following the outbreak of COVID-19 as more customers adopted digital channels.
MoneyGram has been exposed to stiff competition in recent years from fintech players like PayPal Holdings, Inc. PYPL and Square, Inc. SQ after entering the money transfer. This is reflected in revenue declines since 2017 through the first quarter of 2020.
The company has been intensifying focusing on product and channel diversification by investing in both its digital business and the key international markets.
Year to date, the stock has soared 61% compared with its industry’s growth of 22.6%. However, peer Western Union Co. WU, has lost 21% over the same time frame. MoneyGram currently carries a Zacks Rank #5 (Strong Sell).
Source Yahoo Finance