We use cookies to improve user experience, and analyze website traffic.
For these reasons, we may share your site usage data with our analytics partners. By clicking "Accept Cookies" you consent to store on your device all the technologies described in our Cookie Policy.
MoneyGram and the Stellar Development Foundation announced the initial roll-out of a first-of-its-kind global on/off-ramp service for digital wallets to increase the utility of digital assets by creating a bridge between cash and cryptocurrencies. The service, a result of the partnership between MoneyGram and SDF announced in October 2021, is now available in a number of key remittance markets, including Canada, Kenya, Philippines and the U.S. for the first wave of users, with global cash-out functionality expected to be available by the end of June 2022. Powered by the Stellar blockchain and Stellar-enabled digital wallets, MoneyGram's retail agent network, and Circle's USD Coin, a fully-reserved dollar digital currency, the service provides cash users access to the world of cryptocurrency via any participating MoneyGram location. This service is a monumental step towards bridging the gap between physical and digital currencies in a way that has not been done before at scale. As it develops, this solution will pave the way for blockchain technology to further financial inclusion, creating fluidity between cash and crypto so more people can benefit from the digital economy. To support adoption, MoneyGram will offer this as a zero-fee service for the first 12 months.
MoneyGram and Mobily Pay, a mobile wallet powered by Saudi-based telecommunications and digital service provider Mobily, announced a partnership to launch MoneyGram's international money transfer capabilities on Mobily Pay. The partnership is expected to be live for consumers later this year.
MoneyGram International is preparing to launch a service in partnership with the Stellar blockchain that would allow users to send stablecoins and easily convert them to hard currency, Bloomberg's Michael McDonald and Hannah Miller report. "The world of crypto and the world of fiat are not really compatible today," MoneyGram Chief Executive Officer Alex Holmes said in an interview with Bloomberg News. "We're trying to be a bridge from the crypto world to the fiat world." Reference Link
MoneyGram International announced that stockholders approved the transaction with affiliates of funds managed by Madison Dearborn Partners. Based on the preliminary voting results from the Special Meeting of Stockholders held today, over 99% of votes cast were in favor of the transaction. The companies remain on track to close the transaction in the fourth quarter 2022, subject to receipt of remaining regulatory approvals, including required approvals in various jurisdictions related to money transmitter licenses. In addition to MoneyGram stockholders' approval of the transaction, MoneyGram and MDP have achieved a number of other milestones necessary to complete the transaction, including: The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired in connection with the previously filed premerger notification form submitted by MoneyGram and MDP. The companies have submitted all applicable foreign antitrust filings except for one jurisdiction which is close to being finalized and all applicable Foreign Direct Investment filings have been made. To date, 12 state money transmitter regulators have provided their approval or non-objection of the transaction. The required international money transmitter regulators have all been notified of the transaction and any related supplemental filings are in process and will be filed in due course.
Reports Q1 revenue $307.6M, consensus $317.68M. "Record high digital revenue, strong customer retention rates and overall international growth drove strong first quarter results," said CEO Alex Holmes. "Our ability to serve customers directly at scale is enabling the company to navigate continued global volatility, and we're excited to report that digital transactions now account for over 40% of our money transfer business."
MoneyGram International responded to several statements made about the Company by Rohit Chopra, Director of the Consumer Financial Protection Bureau, or CFPB. MoneyGram's statement said: "Over the past week, CFPB Director Rohit Chopra made additional false, inflammatory and misleading statements about MoneyGram [...] While we prefer to not comment on pending litigation, we cannot stand by quietly while unfair and disparaging public statements are made about our Company and our dedicated employees working hard every day to protect consumers from harm [...] The Director's public statements suggest that the CFPB has uncovered widespread and systemic issues involving 'substantial' consumer harm. In fact, data from the CFPB's own consumer complaint portal strongly suggest otherwise. For example, a search of the CFPB's Consumer Complaint Database shows that in the nine years that the Remittance Rule has been in place, only 351 complaints were made to the CFPB against MoneyGram for failing to deliver money when promised. These complaints represent 0.0001% of the over 325 million transactions subject to the Remittance Rule that MoneyGram processed during that time period. In New York, the total number of complaints in the CFPB Database for that time period was 28, approximately three per year [...] Finally, MoneyGram continues to work toward closing the previously announced merger transaction, with an expected closing date to occur sometime in the Q4 of 2022."
Hilary Jackson, COO of MoneyGram International, will be leaving the company on May 2. Her responsibilities have been reassigned to other executive officers of the company
MoneyGram responded to the civil lawsuit filed by the Consumer Financial Protection Bureau - CFPB - and the New York Attorney General - NYAG - and claims issued by the CFPB and its director. The company issued a statement which includes, among other things: "As the industry leader in compliance and consumer protection, MoneyGram is deeply disappointed that the CFPB and NYAG chose to file yesterday's meritless lawsuit and that the CFPB chose to issue two press releases littered with gratuitous and inaccurate statements about the company and the allegations in the case. The company is fully prepared to vigorously defend itself and expose the meritless nature of the lawsuit in court...Over the past decade, the Company has invested more than $800M to enhance its compliance program and doubled the size of its compliance team to build a best-in-class program with record-low consumer fraud complaints. MoneyGram also created a Compliance and Ethics Committee of the Board of Directors that actively oversees the company's compliance function, and the company continuously implements enhancements to ensure that it meets and exceeds industry best practices...We spent considerable time attempting to educate the CFPB and NYAG about our robust and effective compliance efforts and the weakness of their case, including their failure to show any actual consumer harm...In the end, the company refused to be strong-armed into an unfair settlement and MoneyGram was given no choice but to litigate this matter and to defend itself in court...In contrast to the CFPB's public statements, the complaint itself alleges only technical and time-barred infractions of the Remittance Rule and Regulation E and fails to demonstrate any consumer harm or programmatic non-compliance in this regard....MoneyGram stands behind its compliance program and its treatment of customers - as demonstrated by our strong customer experience scores, 4.9-star rated app, consumer trust ratings and remarkably high customer retention rates."
MoneyGram was sued on Thursday by the U.S. Consumer Financial Protection Bureau and New York Attorney General Letitia James for violating a federal rule designed to make remittance transfers more transparent and less risky, according to Reuters. In a complaint filed in Manhattan federal court, the CFPB and James said MoneyGram has repeatedly given senders inaccurate information about when remittance transfers would be available to recipients abroad, and repeatedly failed to properly address customer complaints. Reference Link
As previously reported, Northland analyst Mike Grondahl downgraded MoneyGram to Market Perform from Outperform with a price target of $11, down from $12.25. On February 15, MoneyGram announced a definitive agreement under which funds affiliated with private equity firm Madison Dearborn Partners will acquire all outstanding shares for $11 per share in an all-cash transaction that is expected to close in Q4.
