On Tuesday, October 6, the successful money transfer and global peer-to-peer company MoneyGram International and retail giant Walmart Inc announced that both agreed to extend its partnership through March 2024.
According to MoneyGram International Chairman and CEO Alex Holmes, the decision to extend the partnership which they use to send money via walmart for 4 more years is proof that both companies are aligned in business strategies particularly those geared toward improving customer experience.
Mr. Holmes continued that Walmart’s decision to continue its business relationship with MoneyGram is a testament to the company’s trust in the brand.
With the extension, it means shoppers at Walmart’s 4,700 plus locations will continue to benefit from the money transfer service of MoneyGram. The services are also available at the walmart.money.com website and in Puerto Rico.
Pandemic Sparked Growth
The partnership appeared to have benefited greatly from the pandemic as MoneyGram reported that its total volume of online transactions increased by 106 percent by the second quarter.
For the period, transactions from its digital platform made up 27 percent of the total volume of money transfers. Similarly, the company’s digital partners experienced their transactions increase by 97 percent.
MoneyGram attributed the increase to more consumers favoring online transactions due to the risk of contracting the virus.
MoneyGram’s performance resulted in an increase of 1 cent in diluted adjusted earnings per share based on revenues of US$279.8 million. Previously, industry analysts had a bleak forecast of a US$0.06 per share loss based on projected revenue of US$255.77 million.
MoneyGram also revealed that its MoneyGram Online business grew by 10 4 percent on a year-on-year basis for the quarter. Mr. Holmes disclosed that the majority of the transactions – 80 percent – originated from mobile devices.
Total Revenue Declined Due To Covid-19
Not everything was good news. Investors were disappointed that the total revenue was lower by 14%. The decline was a consequence of the threat of the COVID-19 virus. Revenue from money transfer was lower by 10 percent at US$253 million.
MoneyGram was pleased with the revenue growth in its money transfer business during the month of June. The growth was driven by a significant increase in the number of cross-border transactions.
Overall, MoneyGram’s operating income was computed at US$22 million with net losses pegged at US$4.6 million in the second quarter.
Holmes shared his opinion that the COVID-19 pandemic will continue to affect business, health, and the daily conduct of everyday activities.
In this regard, Holmes assured the public, the company’s shareholders, employees, and suppliers that MoneyGram and Walmart are committed to providing them with the best products and services.