MoneyGram International, Inc. MGI recently expanded its strategic partnership with e& (earlier known as Etisalat Group) brand’s e& international. The partnership is expected to enable e& money mobile-wallet users to send money globally in near real-time.
UAE’s e& is witnessing rapid growth in e& international’s customer base, which is nearing 160 million. Due to the latest partnership, recipients all over the globe will have multiple options to receive money using MoneyGram’s massive network of mobile wallet operators, bank and card services, and retail locations.
The move will likely simplify cross-border payments in the 16 markets where e& operates. Thanks to the strategic partnership, the new service is already online in the United Arab Emirates, Saudi Arabia and Afghanistan. Over the next few months, the service will likely be launched in several markets in Africa, Egypt and Pakistan.
Investments Paying Off
MGI’s investments in digital network expansion, which now extends to more than 100 countries, are paying off as more and more digital partners are using its global platform. The company is witnessing rising demand for its fintech capabilities and its global platform, which enables its partners to add value to their service offerings.
The latest deal further signifies the rising demand for overall global digital transaction capabilities. The e& international partnership will likely enable MoneyGram to extend its reach in the markets across Africa, Asia and the Middle East, where e& operates.
The company’s digital platform is contributing strongly to its top line. To expand the digital business, the company partners with fintechs, banks, telcos and e-commerce sites in large markets to get access to customers looking to utilize MoneyGram's services and global network. At second quarter-end, digital transactions accounted for 44% of all money transfer transactions, reflecting a significant year-over-year increase.
MoneyGram’s shares have increased 24% in the past year against 19.2% fall of the industry.
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Zacks Rank & Key Picks
MoneyGram currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader finance space are CI Financial Corp. CIXX, Arrow Financial Corporation AROW and Brighthouse Financial, Inc. BHF, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in Toronto, CI Financial is an asset management company, which provides different types of services through its subsidiaries. The Zacks Consensus Estimate for CIXX’s 2022 earnings has increased 1.2% in the past 60 days.
Based in Glens Falls, NY, Arrow Financial is a financial products and services provider. The Zacks Consensus Estimate for AROW’s 2022 bottom line has increased 1.8% in the past 60 days.
Charlotte, NC-based Brighthouse Financial is an annuity and life insurance products provider. The Zacks Consensus Estimate for BHF’s 2022 bottom line has improved 17.3% in the past 30 days.
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MoneyGram International Inc. (MGI) : Free Stock Analysis Report
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