Cash switch firm MoneyGram International Inc. has partnered with Global Money Express Co. Ltd., (GME) one of the largest payment financial technology companies in South Korea, according to a Tuesday (June 23) announcement by MoneyGram.
The partnership allows GME customers to connect with MoneyGram’s distribution network in more than 200 countries, MoneyGram said. The collaboration is expected to especially benefit customers who send money from South Korea to China and South Asia.
“Partnering with leading fintech companies is a critical component of our strategy to accelerate digital growth,” MoneyGram Chief Operating Officer Kamila Chytil, who heads the company’s digital business, said in the announcement. “Our new partnership with GME, one of the fastest-growing fintech companies in a key market, will further support this strong digital growth.”
Terms of the deal were not disclosed.
Last month, Dallas-based MoneyGram reported its digital transactions grew by 57 percent in the first quarter, compared to Q4 of last year. But revenues in Q1 fell to $291 million, down from $315 million in Q1 of 2019, a nearly 8 percent decline.
Integration with GME, combined with a recent partnership with E9Pay, represents a milestone for MoneyGram as the company strengthens its position in the South Korea’s $13 billion P2P payments and remittance market, the company said.
Earlier this month, as Fintech Zoom reported, MoneyGram Chairman and CEO Alex Holmes said digital transactions have been surging at the expense of its walk-in locations where the firm has seen a drop in traffic due COVID-19.
On an earnings call, Holmes told analysts the drop came shortly after the pandemic took effect in March, as businesses and normal life began to shut down.
Also this month, Fintech Zoom reported on a potential deal by Western Union to acquire MoneyGram in a transaction that would unite two of the country’s largest money transfer services.
Western Union has made a takeover offer to MoneyGram, but nothing has been made official. MoneyGram has struggled during the pandemic, with its locations closing around the world as governments impose stay-at-home orders. While digital services have gotten a boost, MoneyGram reported that those made up just 18 percent of its earnings in Q1.