MoneyGram Announces Five-Year Extension to Canada Post Partnership

Rhea-AI Summary

MoneyGram International (NASDAQ: MGI) extends its partnership with Canada Post for five more years, ensuring continued money transfer services at over 5,000 locations across Canada through December 2025. This collaboration emphasizes MoneyGram's strong brand presence and commitment to enhancing customer experience. With approximately 300,000 new immigrants annually in Canada and nearly 8 million permanent residents, the partnership aims to meet the evolving demands of their customer base. Both companies expect growth opportunities from this strategic alliance.

Positive

• Five-year extension of partnership with Canada Post until December 2025.
• Over 5,000 Canada Post locations will continue to offer MoneyGram services.
• Partnership capitalizes on Canada's growing immigrant population, enhancing market penetration.
• Strengthens brand presence and customer experience in a major market.

Negative

• None.

DALLAS, Dec. 23, 2020 /PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI), a global leader in cross-border P2P payments and money transfers, today announced a five-year extension to its partnership with Canada Post. This renewal, which runs through December 2025, allows MoneyGram customers to continue to transfer money and pay bills at over 5,000 Canada Post locations throughout Canada, as well as through the Company's online channel (moneygram.ca) and leading mobile app.

"We are thrilled to extend our partnership with Canada Post for five more years as we continue to execute our plan to grow the largest retail partnerships in major markets," said Alex Holmes, MoneyGram Chairman and CEO. "For nearly two decades, MoneyGram and Canada Post have collaborated to enable customers in Canada to easily send or receive money to and from family and friends across the globe. Over the years, we have become Canada Post's preferred partner given the strength of our brand, the breadth of our global platform, and our collaborative strategy to further improve customer experience. The length of the contract term is a testament to the strength of our partnership, and I'm excited about the growth potential ahead."

Annual immigration in Canada currently amounts to around 300,000 new immigrants, one of the highest rates per population of any country in the world. As of 2019, there were just under eight million immigrants with permanent residence living in Canada which equates to roughly 21.5% of the total Canadian population.¹ As such, Canada is a major market for both MoneyGram and Canada Post, and the two organizations will continue to collaborate to meet the ever-changing needs of their mutual customers.

"MoneyGram is a strong partner, and we're thrilled to extend our successful relationship another five years," said John Reis, General Manager Retail at Canada Post. "Our large customer base continues to demand this critical service so that they can quickly and conveniently transfer money back home. We have a robust strategy in place, and I'm excited about the opportunities ahead for further growth and customer-centric collaboration."

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 moneygram.com and follow @MoneyGram.

MoneyGram Media Contact
Stephen Reiff
Media@MoneyGram.com 

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SOURCE MoneyGram

FAQ

What is the significance of MoneyGram's partnership with Canada Post?

The partnership allows MoneyGram to maintain its service at over 5,000 locations in Canada, enhancing accessibility for customers.

How long is the new contract between MoneyGram and Canada Post?

The contract has been extended for five years, running through December 2025.

What demographic is important for MoneyGram in Canada?

Canada's annual immigration rate of around 300,000 new immigrants is significant for MoneyGram's customer base.

How does this partnership benefit MoneyGram's business?

The partnership solidifies MoneyGram's presence in a key market and supports growth in money transfer services.

What year will the MoneyGram and Canada Post partnership end?

The partnership is set to end in December 2025.