MoneyGram International (MGI) Gains On City Express Deal

MoneyGram International Inc (NASDAQ:MGI) recently joined forces with City Express Money Transfer Pvt Ltd., a Nepal-based payment service provider in order to ease money transfer services for residents of the country. Shares of the company gained 3.3% in the last trading session, reflecting investor optimism over its initiatives to expand its geographical presence.

MoneyGram has expanded further into Nepal with the aforesaid deal. Apart from the convenience of money transfer by the residents to their near ones living abroad, MoneyGram will also expand choices for expatriates who remit money back home.

Moreover, customers will now benefit from the extended working hours at MoneyGram for easier money transfers from the Middle East. The World Bank report states that out of the $5.8 billion remittances in Nepal last year, about $1.68 billion came from Qatar and $1.60 billion from Saudi Arabia. Other remittances included from United Arab Emirates, United States, Kuwait & Malaysia. Hence, the aforesaid deal will add substantially to MoneyGram’s operations.

MoneyGram remains focused on expanding operations across the globe. The company has not only strengthened its presence in high-growth potential markets of Latin America, Russia, the Asia Pacific, Africa, Western and Eastern Europe, but also improved its position in the weaker markets with niche strategies. The company recently teamed up with Indonesian company, Arsema, to improve money transfer services as part of its "going global" strategy. MoneyGram also expanded its account deposit offering in Nigeria and Morocco, while adding new mobile wallets in Bulgaria, Sri Lanka, El Salvador and Romania.

City Express is expected to gain significantly from its association with MoneyGram, which is one of the largest money transfer companies in the world, and serve the diverse customers needs efficiently. The Nepal-based payment service provider already enjoys a wide reach in the country – from urban to remote areas. It also has the provisions to receive remittance from countries like Japan, Saudi Arabia, Qatar, and Malaysia. The company is confident that its association with MoneyGram will boost its services substantially and help it to better serve the needs of its customers in Nepal.

Zacks Rank and Other Stocks to Consider

MoneyGram presently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the finance sector include Euronet Worldwide, Inc. (NASDAQ:EEFT) , ORIX Corporation (NYSE:IX) and Credit Acceptance Corp. (NASDAQ:CACC) . Both Euronet and ORIX hold a Zacks Rank #2 (Buy), while Credit Acceptance sports Zacks Rank #1 (Strong Buy).