We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MoneyGram (MGI) Expands Its White Label Service With Walmart
Read MoreHide Full Article
MoneyGram International Inc. has announced a three-year extension to its relationship with Walmart, the world's largest retailer. The deal lasting through March 2024 will extend MoneyGram's services at Walmart, named Walmart2World.
This white label (white labeling is a legal protocol that allows one product or service to be sold and rebranded under another company's brand) money transfer service provided by MoneyGram is available across more than 4,700 Walmart locations in the United States and Puerto Rico. It is also offered via the co-branded digital platform of walmart.moneygram.com. The solution was launched in 2018 by Walmart along with MoneyGram to provide money transfer service in more than 200 countries across the world.
The deal expansion is a testament to MoneyGram’s superior customer-centric service and a strong payment network across more than 200 countries around the globe. This wide network developed by MoneyGram through several partnerships over the years facilitates remittance for customers, offering them a broader choice across geographies.
Walmart and MoneyGram worked together to provide leading financial solutions for consumers in the United States for more than 20 years now. Their superior services also provide security to customers against frauds. MoneyGram has been able to keep the fraud rates in check regarding money remittances in the industry by placing ID requirements for all cash (send and receive) transactions in the United States and thus, has the most accurate KYC (know-your-customer) processes.
Walmart also has partnership with Ria Money, which provides Walmart2Walmart, a domestic money transfer service, launched in 2014. This, in turn, intensified the competition for MoneyGram for Walmart’s marketplace business. In order to make itself more appealing to customers, MoneygGram lowered its price point, which suppressed its revenues. In fact, the minimal price point of the Walmart2World service negatively impacted MoneyGram’s revenue and operating income.
For the six months ended Jun 30, 2020, Walmart2World product represented approximately 9% of MoneyGram’s total revenues. In the second quarter, the Walmart marketplace revenues decreased quarter over quarter and year over year while transaction activity slightly decreased over the same periods.
MoneyGram experienced a decline in transaction volume and related revenues in its walk-in channel during mid-March 2020 due to the adverse effect of mandatory closures and stay-at-home orders. Many of its agents around the world were forced to suspend operations because of government-imposed compulsory shutdowns. In addition, demand for money transfer services decreased as restrictions on mobility, lower levels of economic activity and the unemployment rate affected consumers.
During the second quarter of 2020, progress was made toward containment of COVID-19. As a result, administrative authorities began lifting restrictions, such as quarantines, shutdowns and some shelter-in-place orders. As the constraints are eased, the ability to transact on a more normal basis is restored in many markets. Transaction volume and revenues started to improve in recent months.
World Bank predicted a significant global contraction in the amount of funds transferred for the remainder of 2020 as well as for the duration of the economic contraction induced by COVID-19The competitive environment for the company turned more severe as both established players and new, digital-only entrants innovate and deliver an affordable and convenient customer experience to win a plum market share. PayPal Holdings, Inc. (PYPL - Free Report) and Square, Inc. (SQ - Free Report) are major players in this space.
Notably, MoneyGram’s revenues have been trending down since 2017 through the first quarter of 2020. It has been trying to keep itself grounded by focusing on product and channel diversification by investing in both its digital business and in the key international markets.
In six months' time the stock has surged 138.4% compared with its industry’s growth of 20.7%.
However, another company in the same space, Western Union Co. (WU - Free Report) , has gained 7.3% over the same time frame.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
MoneyGram (MGI) Expands Its White Label Service With Walmart
MoneyGram International Inc. has announced a three-year extension to its relationship with Walmart, the world's largest retailer. The deal lasting through March 2024 will extend MoneyGram's services at Walmart, named Walmart2World.
This white label (white labeling is a legal protocol that allows one product or service to be sold and rebranded under another company's brand) money transfer service provided by MoneyGram is available across more than 4,700 Walmart locations in the United States and Puerto Rico. It is also offered via the co-branded digital platform of walmart.moneygram.com. The solution was launched in 2018 by Walmart along with MoneyGram to provide money transfer service in more than 200 countries across the world.
The deal expansion is a testament to MoneyGram’s superior customer-centric service and a strong payment network across more than 200 countries around the globe. This wide network developed by MoneyGram through several partnerships over the years facilitates remittance for customers, offering them a broader choice across geographies.
Walmart and MoneyGram worked together to provide leading financial solutions for consumers in the United States for more than 20 years now. Their superior services also provide security to customers against frauds. MoneyGram has been able to keep the fraud rates in check regarding money remittances in the industry by placing ID requirements for all cash (send and receive) transactions in the United States and thus, has the most accurate KYC (know-your-customer) processes.
Walmart also has partnership with Ria Money, which provides Walmart2Walmart, a domestic money transfer service, launched in 2014. This, in turn, intensified the competition for MoneyGram for Walmart’s marketplace business. In order to make itself more appealing to customers, MoneygGram lowered its price point, which suppressed its revenues. In fact, the minimal price point of the Walmart2World service negatively impacted MoneyGram’s revenue and operating income.
For the six months ended Jun 30, 2020, Walmart2World product represented approximately 9% of MoneyGram’s total revenues. In the second quarter, the Walmart marketplace revenues decreased quarter over quarter and year over year while transaction activity slightly decreased over the same periods.
MoneyGram experienced a decline in transaction volume and related revenues in its walk-in channel during mid-March 2020 due to the adverse effect of mandatory closures and stay-at-home orders. Many of its agents around the world were forced to suspend operations because of government-imposed compulsory shutdowns. In addition, demand for money transfer services decreased as restrictions on mobility, lower levels of economic activity and the unemployment rate affected consumers.
During the second quarter of 2020, progress was made toward containment of COVID-19. As a result, administrative authorities began lifting restrictions, such as quarantines, shutdowns and some shelter-in-place orders. As the constraints are eased, the ability to transact on a more normal basis is restored in many markets. Transaction volume and revenues started to improve in recent months.
World Bank predicted a significant global contraction in the amount of funds transferred for the remainder of 2020 as well as for the duration of the economic contraction induced by COVID-19The competitive environment for the company turned more severe as both established players and new, digital-only entrants innovate and deliver an affordable and convenient customer experience to win a plum market share. PayPal Holdings, Inc. (PYPL - Free Report) and Square, Inc. (SQ - Free Report) are major players in this space.
Notably, MoneyGram’s revenues have been trending down since 2017 through the first quarter of 2020. It has been trying to keep itself grounded by focusing on product and channel diversification by investing in both its digital business and in the key international markets.
In six months' time the stock has surged 138.4% compared with its industry’s growth of 20.7%.
However, another company in the same space, Western Union Co. (WU - Free Report) , has gained 7.3% over the same time frame.
MoneyGram currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>