In order to further bolster its vast global network of money
Moneygram International Inc.
) has added Banco Ganadero, Bolivia's largest bank based out of
Santa Cruz, the hub of the country's banking community. The money
transfer services will be made available across almost 600
locations in Bolivia.
Per the agreement, the customers of the bank will be allowed to
remit money to and from the company's network. MoneyGram has
already commenced its services at 30 bank locations, starting early
Following the announcement of the deal, the company's shares
rose 2.45% (or 39 cents) to close at $16.32 yesterday. We believe
by expanding its services across a large number of locations,
MoneyGram will not only reduce its operational risk but also
strengthen its avenues of income.
MoneyGram has been on an expansion spree for quite some time
now. It has collaborated with foreign currency exchanges like Casa
de Cambio Angulo Lopez and Venegiros Casa de Cambio for expanding
its money transfer network across Venezuela.
MoneyGram also partnered with the State Bank of India ("SBI") to
augment its presence in the sub-continent. It also renewed its
contract with Advance America and Coppel early this month to
facilitate the transfer of money through a large number of
One of MoneyGram's major competitors,
Western Union Co.
), is also aggressively expanding its global footprint. Recently,
it announced an agreement with Veridian Credit Union to serve its
members with global money transfer facilities. It also signed an
agreement with Michigan-based Citizens Bank to provide its global
remittance services to Citizens Bank customers via 219 of its
branches across Ohio, Michigan and Wisconsin.
MoneyGram currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term Neutral recommendation on its shares.
MONEYGRAM INTL (MGI): Free Stock Analysis
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