PayPal and MoneyGram have recently signed an agreement that will allow the online payments platform’s user to withdraw and deposit cash via MoneyGram – the global money transfer company. PayPal’s 117 million active account users will soon be able to connect their online accounts with offline cash at 284,000 MoneyGram locations, in 196 countries. However, to start, the service will only be available in 2013, in some US locations, before it is rolled out to the whole country and beyond.
“This agreement is a significant milestone for MoneyGram. It represents a new level of innovation and enhances our growth into new areas of the payments industry,” said Pamela H. Patsley, MoneyGram chairman and CEO. “We believe this agreement furthers our goal of making it easy for people to send and receive money in the ways they want, wherever they are in the world, and significantly increases the possibility of e-commerce to MoneyGram consumers.”
The partnership is part of PayPal’s recent venture into the offline world. Recently the online payments provider introduced PayPal Here, enabling small businesses to accept payments through a small card reader connectable to a smartphone. The company also partnered with Discover to bring PayPal to more than 7 million merchant locations across the U.S., starting in 2013.
Now with MoneyGram, PayPal will be accessible to even more offline consumers. “With their global reach and world-class money transmitting capabilities, MoneyGram is the perfect company for us to innovate with,” said Mark Lavelle, Senior Vice President of Strategy and Business Development at PayPal. “Through this new initiative, more consumers will be able to take advantage of PayPal’s digital wallet, and shop at places like eBay or many of the millions of merchants that accept PayPal.”
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