Markets
MGI

Here's Why MoneyGram International Is Soaring Today

What happened

Money transfer company MoneyGram International (NASDAQ: MGI) has been one of the stock market's best performers recently. The stock had already more than tripled since June and is up by another 7% today.

As of noon EDT on Tuesday, MoneyGram shares were trading for about $5.70, as compared to a low of $1.33 reached at the end of May.

Most of the recent rally in MoneyGram can be attributed to the company's partnership with cryptocurrency company Ripple, which also took a substantial stake in MoneyGram. However, today's rally is for a different reason.

Stack of 10-dollar bills.

Image source: Getty Images.

So what

MoneyGram and Visa (NYSE: V) have announced a new partnership that will allow customers to send money to any Visa-branded debit card that's linked to a bank account. If you're curious, there are over one billion Visa debit cards in existence, so to say that this news greatly expands MoneyGram's reach would be a big understatement.

The point of the partnership is create an easy way for MoneyGram customers to send money directly to friends and family. Transactions will have a $1.99 fee, and with the momentum in the person-to-person payments space in recent years, it's not difficult to see how this could be a needle-moving component of MoneyGram's business.

Now what

Today's news isn't producing the most exciting move we've seen in MoneyGram stock recently, but it could be among the most significant headlines involving the company in recent times. MoneyGram's partnership with Visa could be a major catalyst for MoneyGram, and one that doesn't depend on the effectiveness of any cryptocurrency-related partnership.

10 stocks we like better than Visa
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Visa wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 1, 2019

 

Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Visa. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MGI V

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More