Digital money transfer service MoneyGram (NASDAQ: MGI) reported on Thursday 100% year-over-year digital transaction growth in May, which is considered a significant acceleration from the first quarter of 2020 where the company reported 57% growth.
Overall digital growth in May was driven by the following components:
- MoneyGram Online: The company’s direct to consumer channel, delivered 107% year-over-year transaction growth in May, with over 80% of transactions completed on a mobile device.
- Digital partnerships: Driven by key partners in Asia Pacific and Middle East, accelerated from 67% year-over-year transaction growth in April to 92% growth in May.
- Account deposit & mobile wallet: Transactions increased 156% in May which is an acceleration from the first quarter where the company reported 80% year-over-year transaction growth. Growth has been driven by markets such as the Philippines where sends to mobile wallets have increased over 200% compared to the prior year.
Speaking about the progress, Alex Holmes MoneyGram Chairman and CEO, stated:
“Our digital business growth in May is particularly notable as we not only increased our active digital customer base, but also continued to see these new digital customers return and transact more frequently due to our seamless customer experience and global platform.”
MoneyGram describes itself as a global provider of innovative money transfer services and is recognized worldwide as a financial connection to friends and family. The company offers person-to-person money transfer and payment services in more than 200 countries and territories through a global network of approximately 350,000 locations, working with retailers, international post offices, and banks.
“MoneyGram also offers bill payment services, issues money orders and processes official checks in select markets. The company is committed to providing affordable, reliable, secure and convenient payment services to consumers around the world.”
Recently, there have been rumors that Western Union is looking to purchase MoneyGram. As previously reported, Western Union has made an offer to take over MoneyGram, which has notably been in decline as more consumers are continuing to use online payments.
