MoneyGram Expands in India & Mexico - Analyst Blog
08 3월 2012 - 1:24AM
Zacks
Yesterday, MoneyGram International Inc. (MGI)
announced the expansion of its money transfer network in Mexico and
India through separate news flow. The company’s existing money
transfer offering alliance with India Post has been extended to
more than 650 locations across the country from the prior 100
outlets.
While India Post serves across the country through 155,000 urban
and rural locations, it leaves ample scope of expansion for
MoneyGram to gradually reach out to the remotest places in India.
Moreover, about 50% of India’s rural areas lack a banking platform.
Hence, India Post offices come in handily for remitting money from
one place to the other.
In 2011, India received an estimated $53.1 billion in
remittance, according to the World Bank, and is the largest global
remittance market. Most of the money transfer in India is made to
countries like the US, UAE, UK, Canada, Australia and Saudi Arabia.
Hence, the company is in the process of evolving advanced ways of
consolidating in India.
Subsequently, MoneyGram also projects to increase its operating
location to 5,000 India Post offices by 2014. In this regard,
both India Post and the company also intend to initiate joint
marketing services to enhance knowledge about the well-equipped and
secure money transfer service.
Separately, MoneyGram also announced a multi-year alliance with
Latin America-based Grupo Elektra, SAB de CV to add more than 1,800
money transfer locations in Mexico. Grupo Elektra is a leading
financial services company and specialty retailer.
Mexico was once considered to be a slack market for MoneyGram
and had been posting declines in transaction volumes growth.
However, the company’s increased marketing initiatives and spiked
up momentum in the region aided MoneyGram to rebound in the past
nine quarters, generating a 15% upside in the fourth quarter of
2011. The latest alliance further shores up MoneyGram’s network in
Mexico by over 10%.
Money transfer business remains the driving force for MoneyGram,
which has been spreading its money transfer business across the
globe through various recognized financial institutions. Besides,
MoneyGram is also enhancing its brand awareness by developing
user-friendly payment solutions that suit the new market trends.
With regard to this growth strategy, the company also plans to
expand its cash-to-account service to additional banks as well as
add new online services.
Furthermore, MoneyGram continues to explore new growth avenues
in untested locations 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. These efforts also
help to retain the company’s competitive vigour, particularly
against the steady global growth of its arch-rival Western
Union Co. (WU).
MONEYGRAM INTL (MGI): Free Stock Analysis Report
WESTERN UNION (WU): Free Stock Analysis Report
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