Ripple-Partner, MoneyGram, Sees 107% Growth in Customer Transactions Year-Over-Year: Q1 Report
MoneyGram International Inc. (MASDAQ:MIG) peaked at $4.03 on June 10, 2020, representing a sharp 20% increase since the markets opened on Monday. The rise comes in light of the recent release of positive reports on the company’s financial health and customer growth in Q1 2020.
MoneyGram registers 100% YoY growth in customer transactions
In a press release, MoneyGram reports a year-over-year (YoY) growth of over 100 percent in customer transactions on its platforms in Q1 2020. At the end of last year, the international remittance money processor received a $20 million funding from the Ripple Inc. to boost its payment solutions. The funding completes its $50 million offerings for a 15% stake in MoneyGram to run its pilot program for testing the digital token XRP.
In Q1 2020, the company registered expansionary customer transaction growth rates of 57% despite the challenging COVID-10 global pandemic. Ripple Inc. denies any part in MoneyGram’s exploding numbers but remains heavily invested in the company. In February 2020, Ripple disbursed an $11.3 million funding (in XRP) in “money development fees” calling it an incentive program. Alex Holmes MoneyGram Chairman and CEO said,
“I'm excited to report that our strong digital growth continued to accelerate in May, highlighting yet again the incredible progress we've made as an organization to focus on our strategy to lead the industry in digitizing the movement of money.”
“May was a good month”
MoneyGram’s online platform was the best performing platform, registering a 107% YoY growth rate as of May 2020. This was mainly driven by the launch of their mobile device application –contributing to over 80% of the online transactions. Kamila Chytil, Chief Operating Officer at MoneyGram said,
“We've built a modern, mobile, API-driven company that is resonating with millions of consumers across the globe.”
The account deposit and mobile wallet transactions also experience an 80 percent YoY growth but the past month was more impressive registering a monthly growth rate of 156%.
The growth of MoneyGram’s transaction also stems from the deep roots of the company in 200 countries (70 countries enjoying the digital services). MoneyGram recently announced a partnership with Federal Bank in India to facilitate instant transactions in the country. There was also speculation that MoneyGram may be acquired by Western Union, but there hasn't been an official word from either company.