MoneyGram Announces Extension of Walmart Contract
- Payments , Retail Banking
- 06.11.2019 06:02 am
MoneyGram International, Inc. (NASDAQ: MGI), a global provider of innovative money transfer services, previously announced it has extended its agreement with Walmart to continue to provide MoneyGram-branded money transfer, 'powered by' white-label Walmart2World money transfer, bill payment and money order services into 2021.
As announced yesterday by Walmart, the MoneyGram 'powered by' Walmart2World white-label money transfer service will now be joined by other brands in becoming part of a marketplace of money transfer services at Walmart stores across the United States. MoneyGram believes that its leading brand, competitive foreign exchange rates and industry-leading anti-fraud and compliance processes will help drive the future success of the marketplace.
Walmart and MoneyGram have collaborated to provide leading financial service solutions for consumers in the United States for more than two decades. MoneyGram and Walmart continue to align and partner on the future of the industry and have innovated to not only offer the world's leading money transfer service, but to also protect consumers from fraud. MoneyGram pioneered ID requirements for all cash send and receive transactions in the United States, and as a result has the single most accurate KYC (know-your-customer) processes. This commitment to protecting consumers and their money has also resulted in MoneyGram having the lowest fraud rate in the industry.
The previously-announced contract extension serves as a testament that Walmart recognizes the high-quality of the MoneyGram network, which includes numerous strategic relationships around the globe, features will-call transfers and offers customers the greatest choice and convenience to pick up transactions at any MoneyGram network location in more than 200 countries and territories around the world. Other providers limit flexibility and location options for consumers; therefore, the MoneyGram-branded and 'powered by' white-label Walmart2World service should continue to be the top choices for Walmart customers and associates alike.
For the third quarter of 2019, the MoneyGram 'powered by' white-label Walmart2World product represented approximately 9% of total company revenues. At this time, it is difficult to predict exactly how this new Walmart marketplace will impact current transaction volumes and profit margins. Any impact to financial results will depend on a variety of factors including timing of the rollout to the marketplace, how the products are placed at the point-of-sale and how aggressively the competition chooses to price its foreign exchange.