MoneyGram International Inc. MGI is expanding its digital platform to France and Spain. This service which enables customers to remit money via just a few clicks provides enough flexibility, through the utilization of handheld devices such as mobile or a tablet.
The company is aggressively making investments in ramping up its digital channel for money transfer, given the growing acceptance of digital forms of remittance. It has also achieved quite a success in this direction. Its third quarter results disclosed MoneyGram.com growing 23% year over year, led by greater number of customers using its digital services. Revenues from its digital channel have been increasing from past many years.
MoneyGram.com enables customers to send money for cash pickup as well as to 2.4 billion banks, mobile and virtual accounts in 48 countries worldwide. Various components of its digital business MoneyGram.com, mobile account deposit and virtual agents are all showing solid growth.
The European region seems very attractive for the company’s digital growth, given a high population of Internet users (more than 50%). The two countries, Spain and France should further lead to increased business at the MoneyGram.com, given that these are considered as "send" countries for money transfers, with $16.5 billion and $20.7 billion outflows in 2016.
Other companies in the space, Western Union Co. WU and PayPal Holdings, Inc. PYPL also have made significant investments to grow their digital money transfer business and pose good competition.
Recently, the company’s merger with Ant Financial, controlled by Alibaba Group Holding Limited BABA’s co-founder Jack Ma, was called off by the Committee on Foreign Investment in the United States (CFIUS) due to security concerns.
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