In a bid to further expand its money transfer services,
MoneyGram International Inc. (
recently announced that it has expanded its online money transfer
services to the United Kingdom. All the UK-based MoneyGram
customers can avail of this new service.
Couple of days back, the company launched a brand new website in
London. The new website launch in the UK is an extension of
MoneyGram's convenient online service offerings. The latest
initiative is consistent with the company's growth strategy of
developing and marketing its product and services globally. With
regard to this, MoneyGram also plans to expand its cash-to-account
service to additional banks.
The company is focused on expanding its money transfer business
by bringing in more customers to use this self-service facility.
Overall, MoneyGram has a global network of more than 267,000 agent
locations covering about 192 countries, which primarily include
retailers, international post offices and financial
The money transfer service enables a customer to send any amount
of money from anywhere in the world in minutes and is available
round the clock. MoneyGram believes that the concept of
transferring money in a hassle-free way would enthrall the
customers of U.K. MoneyGram is expected to further improve such
services going forward.
We expect this expansion to be accretive to the company's
revenue. MoneyGram generated total revenue of $1.2 billion in
fiscal 2011, thereby registering a growth of 7% over 2010. We
expect the expansion to aid significant top-line growth growing
forward and also help the company to achieve its guidance.
MoneyGram guided first quarter revenue to grow in the band of
Over the past couple of weeks, MoneyGram carried out a few
significant expansions. The company collaborated with two of the
five leading foreign currency exchanges - Casa de Cambio Angulo
Lopez and Venegiros Casa de Cambio for extending its money transfer
network to Venezuela. MoneyGram also partnered with the State Bank
of India to increase its presence in the sub-continent.
MoneyGram's strategic initiatives will help it to attain
competitive edge, particularly against the steady global growth of
Western Union Co.
), which has recently extended its account-based money transfer
services to Canada. The company also continues to explore new
growth avenues in unchartered territories by incorporating latest
and flexible technology that facilitates transfers through mobile
phones, prepaid cards or ATMs, in order to speed up its money
transfer services and enhance the remittance volumes.
We retain our long term Neutral recommendation on MoneyGram. The
quantitative Zacks #3 Rank (short-term Hold rating) for the company
indicates no clear directional pressure on the stock over the near
Headquartered in Dallas, MoneyGram International Inc through its
subsidiaries provides payment services across the globe.
MONEYGRAM INTL (
): Free Stock Analysis Report
WESTERN UNION (
): Free Stock Analysis Report
To read this article on Zacks.com click here.