Digital Transactions Soar Over the Holidays as MoneyGram Reports Record Online Growth

Rhea-AI Summary

MoneyGram International (NASDAQ: MGI) reported a significant increase in online transactions during the holiday season, with a remarkable 142% year-over-year growth for December. This growth was fueled by a surge in demand for the MoneyGram Online (MGO) app, which enabled record numbers of transactions globally. The highest month for direct transfers to bank accounts was achieved, driven by a 500% increase in Visa Direct transactions. The results reflect ongoing digital transformation and robust consumer demand, particularly amid economic challenges from the COVID-19 pandemic.

Positive

• 142% year-over-year growth in cross-border online transactions for December.
• Record number of online transactions in a single month.
• 500% increase in Visa Direct transactions compared to the prior year.
• Strong consumer demand for direct bank account transfers.
• Successful digital transformation enhancing customer experience.

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• None.

DALLAS, Jan. 5, 2021 /PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI), a global leader in cross-border P2P payments and money transfers, today announced record online transactions during the holiday season. For December, MoneyGram Online (MGO) delivered 142% year-over-year cross-border transaction growth and reported the largest number of transactions ever in a given month. Driven by strong demand for the app and its real-time capabilities to send directly to bank accounts and mobile wallets, every country with MGO capabilities delivered a record number of transactions in the month.

"During these uncertain times, when reliability, speed and affordability, coupled with digital-first offerings have mattered more than ever, customers continue to choose the MoneyGram brand in record numbers," said Alex Holmes, MoneyGram Chairman and CEO. "Our growth this holiday season is another important milestone in our consumer-centric digital transformation, and the entire company is incredibly excited about the skyrocketing momentum in our direct-to-consumer business."

MoneyGram previously announced strong consumer sentiment going into the 2020 holiday season, and the December growth in transactions once again highlights the resilience of money transfer consumers to support their loved ones abroad, despite economic hardships caused by the COVID-19 pandemic. Consumers reported that increased needs of family and friends abroad was the largest factor impacting decisions to send money in 2020, above personal situations such as change in income. Sending money for food expenses topped the list with 70% of respondents reporting that those abroad needed more money to take care of their families. This was followed by expenses for housing (55%) and healthcare (52%).

In the survey, consumers also reported that the pandemic had led to an increase in family and friends requesting to receive money digitally, such as direct into a bank account or a mobile wallet instead of cash. Consistent with these findings, in the month of December, MoneyGram achieved its highest month ever for money transfers sent directly to accounts. Growth was driven by real-time transfers utilizing Visa Direct, which increased over 500% in December as compared to the prior year.

"Our leading digital capabilities – including real-time transfers and the industry's best user experience – continue to drive phenomenal results, and we're proud to be the leading choice in cross-border money transfer for consumers this holiday season," said Kamila Chytil, MoneyGram COO and leader of the Company's digital business. "As we look ahead, we're focused on scaling even faster and ensuring our customers have the best digital experience imaginable."

About MoneyGram International, Inc.
MoneyGram is a global leader in cross-border P2P payments and money transfers. Its consumer-centric capabilities enable family and friends to quickly and affordably send money in more than 200 countries and territories, with 81 now digitally enabled.

MoneyGram leverages its modern, mobile, and API-driven platform and collaborates with the world's leading brands to serve millions of people each year through both its walk-in business and its direct-to-consumer digital business.

With a strong culture of innovation and a relentless focus on utilizing technology to deliver the world's best customer experience, MoneyGram is leading the evolution of digital P2P payments.

For more information, please visit ir.moneygram.com and follow @MoneyGram.

Media Contact
Stephen Reiff
Media@MoneyGram.com 

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SOURCE MoneyGram

FAQ

What were the online transaction growth figures for MoneyGram (MGI) in December 2020?

MoneyGram reported a 142% year-over-year growth in online transactions for December 2020.

How did MoneyGram (MGI) perform during the holiday season of 2020?

MoneyGram experienced record online transactions and a significant increase in the use of their app during the holiday season.

What contributed to the growth in MoneyGram's (MGI) online transactions?

Growth was driven by strong demand for the MoneyGram Online app and an increase in real-time transfers.

What percentage increase was observed in Visa Direct transactions for MoneyGram (MGI) in December 2020?

Visa Direct transactions increased by over 500% in December 2020 compared to the previous year.