MoneyGram International Inc.
) has inked a partnership agreement with a leading Romanian
payment services company, Payzone Romania. Pursuant to the deal,
MoneyGram will provide money transfer services throughout the
country with the help of Payzone Romania.
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Through more than 11,000 terminals, Payzone Romania, the local
payment service provider offers a number of payment services and
electronic recharge services. Through its alliance with the
company, MoneyGram will reach out to customers at hundreds of
Playzone locations and provide money transfer services. By the
end of 2013, MoneyGram services are expected to be provided at
The tie up between the companies will provide a fast,
cost-effective, reliable and competent money transfer facility to
the customers who do not have or use a bank account or credit
card to transfer funds. Therefore, MoneyGram intends to tap this
opportunity and move ahead with the objective to ramp up its
global business network.
In the last reported quarter, MoneyGram's global agent network
increased 15% to 327,000 global locations, and the compnay is
committed to expand its global business locations further.
Towards this end the company previously signed an agreement with
two postal services providers in Africa in Jul 2013 to provide
money transfer services in the region. The postal service
providers are Uganda Post Limited (Posta Uganda), and Tanzania
Posts Corporation (Posta Tanzania).
However, increasing debt levels and a weak cash position remain
matters of concern for the company. Currently we have a Zacks
Rank #4 (Sell) on the company. Among others in the industry,
favorable names include
CIT Group Inc.
SS&C Technologies Holdings Inc.
). These companies carry a Zacks Rank #2 (Buy).