Fortifying its roots in Malaysia,
MoneyGram International Inc.
) has added the leading remittance company - Merchantrade - in an
attempt to boost its money transfer services across the
Per the agreement, MoneyGram will be offering its basic money
transfer services and will soon be able to utilize Merchantrade's
online remittance service. This will enable MoneyGram to transfer
money easily via online means, and thus progressively cover more
of the market share. The idea is to add value to the business by
giving MoneyGram customers access to convenient and varied money
Malaysia has always been one of the active operational grounds
for MoneyGram. Particularly, since the last few years, the
company has expanded its base in the country by inking strategic
money transfer alliances. This included the incursion of more
than 400 CIMB Islamic Bank branch locations throughout Malaysia
Earlier in 2011, MoneyGram boosted its functions in over 600
locations with the leading Maybank and other non-bank agents such
as International Money Express, Prabu Money Transfer, SMJ and EZ
Money Express. Such global alliances have helped to extend the
elasticity of remittance to any of the 190 countries under
MoneyGram's network coverage.
Growth prospects for MoneyGram is also validated by the World
Bank, who estimated Malaysia's remittance market to be worth $7
billion in 2011, marking it as the sixth largest nation in the
list of top 10 send countries.
The global money transfer industry saw over $400 billion worth
of opportunities in 2011 itself. Hence, we believe that the
rising number of immigrants amplify the money remittance
provisions, thereby opening ample avenues of growth for MoneyGram
in future too.
Moreover, the scope of growth also justifies the company's
robust network accretion so far in 2013. While the company added
DenizBank in Turkey last week, it also entered into money
transfer alliances in the unexplored markets of Myanmar,
Bangladesh, Romania and Fuji last month.
While MoneyGram carries a Zacks Rank #4 (Sell), strong peer
Fleetcor Tech Inc.
) holds a Zacks Rank #1 (Strong Buy). Other outperformers of the
financial services sector include
Financial Engines Inc.
Global Cash Access Holdings Inc.
), each of which carry a Zacks Rank #2 (Buy).
FLEETCOR TECH (FLT): Free Stock Analysis
FINANCIAL ENGIN (FNGN): Free Stock Analysis
GLOBAL CASH ACS (GCA): Free Stock Analysis
MONEYGRAM INTL (MGI): Free Stock Analysis
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