Expanding its mobile money transfer services in Africa,
MoneyGram International Inc.
) introduced its first mobile money remittance service in
alliance with South Africa's leading First National Bank (FNB).
This further fortifies the company's alliance with the bank,
which took place last year.
Accordingly, MoneyGram will be able to remit money globally
through mobile devices using FNB's banking mode of payment
services, thereby enjoying the bank's vast and strong network
across South Africa. Moreover, FNB's customers can access any of
MoneyGram's 1,000 money transfer locations across South Africa in
order to send or receive money.
South Africa is the third largest hub of the significant
remittances with an estimated 1.8 million African migrants who
are on the receiving end, while about 0.9 million South Africans
living abroad send money to their families in the region,
according to the World Bank. Hence, the cyclical money flow is a
MoneyGram continues to bolster its position as one of the
leading money transfer companies in the world by constantly
expanding its payment network via alliances. Simultaneously,
MoneyGram is also enhancing its brand awareness by developing
user-friendly payment solutions that suit the new market trends.
In this regard, the company offers various self-service products
such as mobile, kiosk and online money transfer payment
Such efforts are not only creating demand for the global
remittances but are also boosting the company's brand value. The
effects of its consistent growth strategies were also visible in
the company's recently announced fourth-quarter 2012 results.
MoneyGram has been gaining traction with the raised momentum in
self-service and new channel revenue that jumped 50% in 2012.
Further, the company successfully procured about 43,000 agent
locations in 2012.
Led by diversified and market-compliant growth strategies,
MoneyGram aims to continue achieving double-digit growth in money
transfer transactions and increasing free cash flow.
While MoneyGram carries a Zacks Rank #2 (Buy), other
outperformers in the financial sector include
Euronet Worldwide Inc.
Columbia Banking System Inc.
). All of these carry a Zacks Rank #1 (Strong Buy).
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