Shares of MoneyGram jumped more than 16 percent on Monday (Feb. 1), boosted by the news that the company extended its pact with Walmart for another three years, which would bring the length of the relationship between the two companies to 20 years.
[bctt tweet=”With the recent renewal, the relationship between Walmart and MoneyGram extends to 20 years.”]
The extension becomes effective as of the beginning of February, said MoneyGram in an announcement. Through the terms of the pact, MoneyGram will continue to offer up domestic and international transfer services to the retailing giant, with the fellow continuance of bill pay and money order products. Those latter two offerings are available at Walmart’s 4,000 locations dotting the United States and Puerto Rico. The release also noted that Walmart shoppers have the option of sending and receiving funds via MoneyGram through Walmart.com.
In statements accompanying the release, Alex Holmes, MoneyGram’s chief executive officer, said: “We are extremely pleased to extend our relationship with Walmart for an additional three years. For nearly two decades now, MoneyGram and Walmart have worked side by side to make money transfers and other financial services affordable and convenient for our customers.”
Separately, Kirsty Ward, Walmart’s senior director of U.S. financial services, said: “Leveraging our size and scale to take on big challenges and create better ways to serve our customers is something we’re always working on. MoneyGram is a great provider in helping us deliver results that matter to our customers, offering innovative products and services that help them better manage their finances for less.”
MoneyGram shares popped on the news to $6.18 a share at the end of the day; intraday moves were even more impressive as the stock touched $7.09 and was well off its 52-week low of $4.99.
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