In order to strengthen its foothold in Russia,
MoneyGram International Inc.
) has inked a deal with one of the leading mobile phone retailers
in Russia - MTS. The transaction is a product of an earlier
collaboration between MoneyGram and RNKO Payment Center.
Pursuant to the deal, MoneyGram will provide money transfer
services at all MTS stores across the nation. MoneyGram currently
has a presence in more than 334,000 locations across the world
including retailers, international post offices and financial
institutions. The deal will help Russian as well as foreign
citizens to transfer money to friends and family at any of these
locations conveniently, without visiting a bank.
The 2008 collaboration between MoneyGram and RNKO Payment Center
has led many Russian banks to provide money transfer services
through MoneyGram. As per a report on Global Money Remittance
Industry-Performance and Forecast 2016, published by Ken-Research
in 2012, Russia is one of the countries expected to hold a
leading position in the global remittance market. The association
with MTS will increase the number of agent locations for
MoneyGram in Russia, thereby expanding its operations in the
nation and help it to capitalize on the opportunities offered by
This well-known money transfer entity provides its services in
nearly 200 countries and territories across the globe. It also
provides bill payment services in the U.S. and Canada. So far in
2013, overall money transfer revenue growth as reported by
MoneyGram was 12.5%. The aforementioned deal should enhance
revenue growth further by increasing the Russian client base of
the company and thereby bolstering growth. Overall long-term
expected earnings growth rate for this stock is 13.9%.
MoneyGram currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the same sector include
Euronet Worldwide Inc.
). While Cielo and Euronet carry a Zacks Rank #1 (Strong Buy),
CapitalSource holds a Zacks Rank #2 (Buy).
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