Industry NewsJune 10, 2021

MoneyGram Online Reports Record High Transactions for May But Take it With a Pinch of Salt

MoneyGram International, one of the largest payment and remittance service providers, has announced that its online entity, MoneyGram Online, has achieved record-high transactions for May.

Though no details have been given regarding the actual numbers, the company has said that the cross-border transactions and revenue have grown by over 50% and 60% respectively. This builds on top of the record transactions that it had reported for April as well.

“We continue to deliver remarkable digital growth, which is especially noteworthy when compared to last year’s record-setting numbers,” said Alex Holmes, MoneyGram Chairman, and CEO. “Our sustained digital growth demonstrates that consumers are valuing our leading user experience and expansive digital footprint. As consumer behavior and tech-driven innovation continue to rapidly evolve, I’m excited our products are resonating with this digital-first generation. As a result, our consumer-direct channel has hit yet another growth milestone and continues to capture market share.”

MoneyGram has been in the news recently for both good and bad reasons as well. The company has been reporting record transaction volumes over the last few months which is in line with the rest of the payments and remittances industry. People have been forced to rely on digital payments during the pandemic period and this practice continues even after the pandemic has started receding as the ease and reliability of this kind of payment has helped to retain customer patronage.
But MoneyGram has also been in the news for opting to sell its company shares in the market and for looking to mop up $100 million through this method to repay its outstanding debt and this led to the share price toppling for a couple of days. A company that is doing very well monthly and racking up record volumes and revenues but at the same time looking to sell off its shares to pay its debt didn’t sit well with investors and traders and that has raised eyebrows all around.
The company seems to be confident of what it is doing as it continues to grow and expand across the globe as well as adding new features to its platform to enhance the user experience. This confidence needs to start rubbing off on the investors and users as well and transparency over the numbers and volumes would help to boost their confidence.
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