MoneyGram International Inc. (MGI) inked a deal with Chile’s portal system, CorreosChile pursuant to which it will provide money transfer services at above 200 CorreosChile branches all over the country. Taking into account the new deal, MoneyGram will now consist of 30 postal systems through which it provides its money transfer services globally.
MoneyGram provides money transfer services in 198 countries and territories across the globe. It also provides bill payment services in the United States and Canada. It consists of a global network of more than 321,000 agent locations which includes retailers, international post offices and financial institutions. In association with CorreosChile it now aims at expanding its services to Chile and cater to the unique requirements of the Chilean clients.
The population residing at various Chilean urban and rural locations were in need of a convenient and affordable option to send and receive money around the world. Subject to the local time needed for operations and to fit within regulations, MoneyGram allows money transfer in as less as 10 minutes. As a result, the alliance of MoneyGram and CorreosChile will enable customers at various postal locations in Chile to utilize MoneyGram’s robust and reliable global network to send and receive money conveniently across various parts of the world.
At present MoneyGram has postal relationships in countries such as Canada, Jamaica, India, Italy, Morocco, Poland, Ukraine, and the United Kingdom. MoneyGram engages in a number of strategic alliances with post offices to widen its global presence and fortify company growth. To realize this business expansion objective, MoneyGram entered into a partnership agreement with a leading bank in Bosnia-Herzegovina and the pan European region – Intesa San Paolo Bank in May, 2013. Through the deal, MoneyGram intended to provide international money transfer services at more than 50 branch locations of the bank across the country.
We expect the partnership with CorreosChile to enhance revenues of the company through increased client acquisition thereby bolstering company growth. The Zacks Consensus Estimate for full year 2013 is currently pegged at $1.20 representing a year-over-year improvement of 23.71%.
MoneyGram currently carries a Zacks Rank #4 (Sell). Among others in the industry, FleetCor Technologies Inc. (FLT) carries a favorable Zacks Rank #1 (Strong Buy) while Moody’s Corp. (MCO) and Euronet Worldwide Inc. (EEFT) carry a Zacks Rank #2 (Buy).
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