Cross-border Payments

MoneyGram, Uber Offer Discount On Digital Money Transfers To Drivers

MoneyGram is partnering with Uber in order to offer discounts on money transfers to over 200 countries and territories, a press release states.

The discount is available to anyone who earns money on an Uber-related gig economy app, including Uber Eats, Uber Works and Uber Freight.

“The spread of COVID-19 has been hard for everyone, and it has been particularly challenging for people who drive and deliver with companies like ours. To help those who are supporting loved ones abroad during these uncertain times, we're excited to partner with MoneyGram,” said an Uber spokesperson.

MoneyGram chairman and CEO Alex Holmes said his company’s service was frequently used as a method to send money back to peoples’ home countries.

“Our companies have significant overlap in the populations we serve, and drivers know and love the MoneyGram brand,” he said, according to the press release. “In fact, this partnership is a direct result of customer feedback, and we're proud to provide drivers with affordable access to our global platform during this challenging season brought about by the COVID-19 pandemic.”

Remittance payments to several poorer countries, including Somalia, Haiti and South Sudan, have fallen off during the pandemic as the world ground to a halt and economies in every country fell. That could have dire effects in the future as the ripples continue outward from the crisis.

Remittance payments, according to statistics from The Financial Times, could drop 20 percent, going from $554 billion in 2019 to $445 billion this year.

As of last year, remittances were the biggest source of cash flow to some lower-income countries, overtaking foreign direct investments. Many economies will now be left without crucial financing.

MoneyGram has seen the effects of the pandemic in how much foot traffic has fallen off in favor of a 57 percent jump in digital transaction growth.

As of April 27, Holmes said MoneyGram Online transactions had spiked 88 percent, and many key markets had seen over 200 percent jumps in transaction rates.

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