PayPal Bypasses Banks With MoneyGram Announcement

What's Next In Payments®
5:07 PM EDT August 6th, 2013

By Pete Rizzo, Editor (@pete_rizzo_

A new service from MoneyGram and PayPal will soon give underbanked consumers across the United States the ability to shop online, send gifts and receive physical cash without a bank account.

MoneyGram, a Dallas-based global payment services company announced yesterday that PayPal customers can now withdraw money from their PayPal accounts online and pick-up the funds at physical MoneyGram locations. 

MoneyGram called the new service “the first phase” of a larger rollout in its August 6 press release. By the end of 2013, PayPal customers will also be able to load funds into their PayPal accounts at U.S. MoneyGram locations.

Under the agreement, consumers without bank accounts or credit cards will be able to create and maintain PayPal accounts. The two companies launched a new website, www.paypal.moneygram.com, that gives detailed steps on how users can send gifts, withdraw cash and add cash with the service.

Pamela Patsley, MoneyGram’s chairman and CEO, called the partnership an example of how the company is giving customers new ways to send and receive funds.

“Innovation is at the core of MoneyGram’s business today, and we’re delighted to work with one of the world’s leading e-commerce companies to deliver this valuable new service,” Patsley said.

Mark Lavelle, PayPal’s senior vice president of strategy and business development, noted similar benefits in his statement on the partnership.

“This new service will provide an even greater level of flexibility, convenience and value to existing PayPal users,” Lavelle said in an August 6 press release.

PayPal users in Dallas, New York and San Francisco will get a sneak preview of the service soon. MoneyGram said testing would begin in these markets before the end of the month.

For more information on the partnership, read the full press release here.

Topics:
Comments
Also by This Author
What's Hot
Alternative Financial Services
Walmart Unveils Walmart-2-Walmart Money Transfer Service
Merchant Innovation
Home Depot’s eCommerce Renovation Project
Company Spotlight
Australia-based Pinpoint To Be Purchased By MasterCard
News
AmEx Posts Higher Profits As Spending Ticks Up In Q1 2014
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
Alternative Financial Services
Walmart Unveils Walmart-2-Walmart Money Transfer Service
B2B Payments
Moving Money Cross Border via an API?
B2B Payments
The SMB Lending Outlook
Merchant Innovation
Home Depot’s eCommerce Renovation Project
View All Articles ››