MoneyGram, Walmart To Continue Money Transfers Into 2021

Walmart and MoneyGram have extended their agreement into 2021 to provide MoneyGram-branded money transfers, as well as money transfers, bill payment and money orders powered by white-label Walmart2World services, into 2021, according to a release.

MoneyGram’s Walmart2World-powered white-label transfer service is joining other brands to become “part of a marketplace of money transfer services at Walmart stores across the United States,” per the release.

MoneyGram said its “leading-brand, competitive foreign exchange rates and industry-leading anti-fraud and compliance processes will help drive the future success of the marketplace.”

One of the main goals of the collaboration is to protect customers from fraud. MoneyGram said it was a pioneer in setting ID requirements to send and receive cash, and that its know-your-customer (KYC) processes are some of the most accurate.

“This commitment to protecting consumers and their money has also resulted in MoneyGram having the lowest fraud rate in the industry,” the release said.

MoneyGram has locations in over 200 countries and territories around the world. The MoneyGram “powered by” white-label Walmart2World product made up about 9 percent of company revenues in Q3 of 2019. MoneyGram said it is difficult to predict how the new marketplace will affect volumes and profit margins.

“Any impact to financial results will depend on a variety of factors, including timing of the rollout to the marketplace, how the products are placed at the point of sale and how aggressively the competition chooses to price its foreign exchange,” the release said.

On Friday (Nov. 1), MoneyGram International posted results that missed expectations and sent the stock tumbling, but the firm noted progress is being made in its digital transformation.

Revenues of $324.5 million were off by 6.5 percent year on year, missing expectations by $9.8 million. Adjusted losses of three cents a share were six pennies worse than expected. Shares were down nearly 15 percent on the day to $3.38.