MoneyGram has made a strategic minority investment in the cryptocurrency exchange Coinme, a move that gives it a roughly 4% ownership exchange in the company.
“At MoneyGram, we continue to be bullish on the vast opportunities that exist in the ever-growing world of cryptocurrency and our ability to operate as a compliant bridge to connect digital assets to local fiat currency,” Alex Holmes, MoneyGram chairman and CEO, said in a news release Wednesday (Jan. 5).
“Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies.”
Read more: Coinme Brings Bitcoin To MoneyGram’s POS
This investment follows MoneyGram’s announcement in May 2021 that it was working with Coinme to expand access to bitcoin.
This collaboration uses MoneyGram’s application programming interface (API)-driven payments platform and Coinme’s cryptocurrency exchange and custody technology to provide bitcoin to thousands at point-of-sale (POS) locations around the country, which lets people sell or purchase cryptocurrency.
The two companies say they have other initiatives in the works that are expected to further enhance the value of their partnership.
“We see this as an incredible opportunity to continue our strong growth and build on our leading presence in the world of crypto,” said Neil Bergquist, Coinme CEO. “With MoneyGram’s global network and infrastructure, both the company’s continued partnership and strategic investment will help us accelerate our growth and international expansion.”
Last month, MoneyGram launched a partnership with the Indian payments bank Paytm, allowing MoneyGram customers from around the world to send money directly to Paytm wallets in India.
The company says its digital transactions in India represent close to 50% of all transactions received in that country, with the number of transactions sent directly to bank accounts six times greater at the end of 2021 than in 2019.
MoneyGram says this collaboration will help boost its growth rates in India as digital payment uses increases. The firm cites rankings from the World Bank, which places India at the top of the list of the world’s biggest inbound markets, with $83 billion in remittances in 2020.