In an effort to move a step closer to providing its customers'
assistance at times of distress,
Moneygram International Inc.
) and UnionPay recently signed an agreement in China.
Per the agreement, MoneyGram will provide "emergency cash
services" to the credit card cardholders of UnionPay under the
circumstances of the card not working or being stolen or misplaced.
The company is liable to provide assistance up to $5,000.
284,000 of MoneyGram's locations will be accessible to the
credit card cardholders of UnionPay so that they can receive the
money. Also, the cardholders need to register with the services of
MoneyGram. The services will be made available by the company in
Currently, MoneyGram is entering into numerous partnerships,
renewing previous contracts and signing agreements to expand the
reach of its money transfer services on a wider scale. Recently,
MoneyGram renewed its contract with Vietcombank and signed an
agreement with Banco Ganadero.
These initiatives have been driving its shares upward. To date,
it has gained 7.1% (or $1.06) since the beginning of the third
quarter, to close at $16.08 yesterday.
The company is focused on growing 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 institutions.
The service enables a customer to transfer any amount of money from
across the world in minutes. It operates around the clock.
Western Union Co.
), MoneyGram's closest competitor, has been equally proactive on
these lines and is posing a stiff competition to MoneyGram. The
shares of Western Union have been increasing at a constant rate as
well. Its shares too have gained 2.5% (or 43 cents) since the
beginning of the third quarter to close at $17.43 yesterday.
Both companies hold a Zacks #3 Rank that translates into a
short-term Hold rating. We also have a long-term Neutral
recommendation on the shares of both MoneyGram and Western
MONEYGRAM INTL (MGI): Free Stock Analysis
WESTERN UNION (WU): Free Stock Analysis Report
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