MoneyGram Rides On Transaction Growth In Its Digital Business
Zacks Investment Research | Mar 18, 2020 08:59AM ET
MoneyGram International, Inc. (NASDAQ:MGI) is well-positioned to benefit from its Direct-to-Consumer digital business, evident from improved transaction growth of the business.
On a year-to-date basis, the company’s digital platform — MoneyGram Online — registered a year-over-year surge of around 60% in its transaction growth. The huge uptick compares favorably with a 39% rise in transaction growth reported in fourth-quarter 2019.
Improved overall transaction growth can be attributed to strength in the company’s U.S- outbound and international transactions. While revenues improved 70% year over year for international transactions on a year-to-date basis, transactions soared 116% year over year. Similarly, U.S.-outbound recorded transaction growth of 101% year over year and revenue growth of 37% year over year on a year-to-date basis.
Such strength in digital transactions comes as a relief in the dismal period of the coronavirus pandemic as people around the globe will have easier access to the company’s digital services in a situation when they have been temporarily restricted to their houses.
Initiatives for Boosting Digital Business
The company seems to be in a bid to expand its digital business on partnerships. For expanding its global network and getting access to the leading consumer-centric capabilities, MoneyGram partnered with LuLu Money in January 2020. In the same month, it tied up with EbixCash as part of its constant investments to boost its digital business.
MoneyGram has also been making consistent efforts to enhance its digital services suite, backed by constant technological upgradations. Such initiatives enabled customers to engage in digital transactions in over 67 countries. As a result, digital transactions now account for 23% of the total money transfer transactions.
We believe that such a strong digital business is likely to benefit the company’s Global Funds Transfer segment, which offers money transfer services through digital networks. The segment accounted for 92.1% of MoneyGram’s total revenues in 2019.
Shares of the Zacks Rank #2 (Buy) company have lost 37.2% on a year-to-date basis, underperforming the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.