Shares of Ripple Partner MoneyGram Skyrocket 16 Percent in Two Hours. Here's Why
Dallas-based payment company MoneyGram, which received a $50 investment from Ripple in 2019, has just reported that the number of its digital transaction has grown 100 percent in May compared to the previous year in a press release.
Its stock (NASDAQ: MGI) pumped more than 16 percent on the news to an intraday high of $3.87.
Alex Holmes, the CEO of MoneyGram, says that the company aims to become a leader in digitalizing money transfers:
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.
Alex DovbnyaMobilizing payments
MoneyGram, whose shares are down 98.6 percent from their all-time high of $286, is currently undergoing a rapid digital transformation in a bid to complete with an armada of newfangled fintech startups that are vying to eat its lunch.
More than 80 percent of all transactions recorded by the MoneyGram Online service was made with the help of mobile phones.
Back in February, MoneyGram introduced the Visa Direct-powered FastSend feature that allows its customers to transfer remittances by only using a phone number.
The above-mentioned press release states that mobile wallet transactions skyrocketed 156 percent in 2019.
Digital partnerships
Its recent growth figures are also attributed to a slew of new strategic partnerships inked in numerous world regions where the company plans its expansion.
On June 5, it made an announcement about its partnership with Al Rajhi Bank, the largest Islamic bank.
Back in May, MoneyGram also joined forces with South Korea remittance firm E9Pay.
Earlier this month, Bloomberg reported about a potential merger between Western Union and MoneyGram International, but the deal could face serious antitrust scrutiny.
Dan Burgin
Arman Shirinyan
U.Today Editorial Team
Vladislav Sopov