MoneyGram (MGI) Expands Digital Services In Asia Pacific

MoneyGram International, Inc. (NASDAQ:MGI) has expanded its digital capabilities in the Asia Pacific to provide consumers in the region with more options to transfer money.

The facilities of the leading MoneyGram website and the MoneyGram Plus Rewards program are now available in Hong Kong, and the MoneyGram app can be used by consumers in New Zealand to send money to family and friends across the globe.

This move is in line with the company’s strategy to strengthen the digital platform and expand outside the U.S market. The company recently reported that 60% of total money transfer revenues comes from non-U.S. markets, with digital transactions now accounting for 20% of all money transfer transactions.

The recent launches of MoneyGram Online in Hong Kong and New Zealand combined with digital partnerships make the company’s digital money transfer service available in more than 60 countries and regions.

MoneyGram, headquartered in Dallas, is the second-largest money transferor in the world. It caters to both individuals and businesses globally. Individuals use the company’s services to transfer money from any country where MoneyGram’s agent location is present.

The Asia-Pacific remittance industry looks attractive, given the rise in mobile-based payment channels owing to the use of technology in everyday lives, reduced remittance costs and transfer time, and an increase in the adoption of banking & financial services.

The Asia-Pacific digital remittance market is projected to reach $215,817 million, at a CAGR of 24.2%, according to the Global Opportunity Analysis and Industry Forecast, 2018-2025.

Increasing cross-border transactions and preference for mobile banking and mobile-based payment solutions are expected to drive growth of the remittance market in the Asia Pacific. MoneyGram is one of the key players operating in the Asia-Pacific digital remittance market.

Shares of this Zacks Rank #5 (Strong Sell) company have surged 46% year to date, outperforming its industry's growth of 19.5%.

Stocks to Consider

Some better-ranked stocks in the same space include AXA Equitable Holdings Incorporation (NYSE:EQH) , PRA Group, Incorporation (NASDAQ:PRAA) and Global Life Incorporation (NYSE:GL) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AXA Equitable Holdings operates as a diversified financial services company worldwide. Its four-quarter positive surprise is 12.40%, on average.

PRA Group engages in the purchase, collection and management of portfolios of non-performing loans in the Americas and Europe. Its earnings managed to beat in three of the four quarters, the average positive surprise being 18.07%.

Global Life provides various life and supplemental health insurance products and annuities to lower-middle to middle-income households in the United States. It came up with a four-quarter positive surprise of 1.53%, on average.

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