MoneyGram Extends Relationship With Walmart

MoneyGram International, the global peer-to-peer payment and money transfer company, has extended to its relationship with Walmart Inc. through March 2024, the Texas-based company announced on Tuesday (Oct. 6).

The deal means MoneyGram’s services will continue to be available at more than 4,700 Walmart locations in the U.S., Puerto Rico and on its digital platform at walmart.moneygram.com.

“This longer-term extension is a testament to our strong alignment on customer-centric strategies as well as continued preference for the MoneyGram brand at the point of sale,” said Alex Holmes, MoneyGram’s chairman and CEO, in a statement.

In July, the company reported that its online transaction volume grew 106 percent year over year during the second quarter, as the firm capitalized on a digital transformation that began long before the pandemic. 

The company said digital transactions accounted for 27 percent of its total money transfers during the period. In addition, transactions from MoneyGram’s digital partners grew 97 percent.

Overall, MoneyGram reported 1 cent in diluted adjusted earnings per share on $279.8 million in revenue. That beat analysts’ forecasts of a 6-cent-per-share loss on $255.77 million in revenue.

Additionally, the firm reported that MoneyGram Online saw 104 percent transaction growth year on year during the quarter. Holmes said in a call with analysts that more than 80 percent of June’s MoneyGram Online transactions were conducted on mobile devices.

Still, some results disappointed investors. Total revenue was $279.8 million, down 14 percent primarily due to the impact of COVID-19. Money transfer revenue was $253 million, down 10 percent. The company did report positive money transfer revenue growth in June on the strength of double-digit cross-border transaction growth. While operating income was $22 million, up 54 percent, net losses were $4.6 million in Q2.

“As the ongoing COVID-19 crisis continues to impact countless lives around the world, the health, safety and livelihoods of our customers, employees and partners remain our top priorities,” Holmes said. “I’m extremely proud of how we’ve come together as a company over these last few months to exceptionally serve our diverse customer base of tens of millions of people who rely on our essential services.”