MoneyGram Reports 100 Percent Digital Transaction Growth In May
MoneyGram has been doing well in May, illustrated by a triple-digit percentage increase in digital transactions.
The popular money transfer app reported a 100 percent growth increase year-over-year in May, a press release states.
That’s a significant jump from the company’s 57 percent digital transaction spike in the first quarter.
The growth in May was driven by MoneyGram Online, the company’s direct-to-consumer (DTC) channel, which reported 107 percent growth and over 80 percent of total transactions done on a mobile device. New digital partnerships in Asia and the Middle East also worked to boost transaction growth to 92 percent in May.
There was also a 156 percent spike in account deposits and mobile wallet transactions, including over 200 percent growth in the Philippines in those departments year over year.
Alex Holmes, MoneyGram chairman and CEO, said he was proud that the company was able to continue growing.
“Our digital business growth in May is particularly notable, as we not only increased our active digital customer base, but also continued to see these new digital customers return and transact more frequently due to our seamless customer experience and global platform,” he said, according to the press release.
MoneyGram’s digital transactions have been surging at the expense of its walk-in locations, which have seen a drop in traffic due to the coronavirus pandemic.
Holmes said on a recent earnings call that the drop came shortly after the pandemic took effect in March, as businesses and normal life functions began to shut down. But as people turned to alternative payment methods, including for P2P services, MoneyGram’s digital arm started to see a boost.
Western Union has also made an offer to purchase MoneyGram, although it is not set in stone.