Yahoo Finance MoneyGram's (MGI) Tie-Up to Boost Wallet Usage in Saudi Arabia
MoneyGram International, Inc. MGI recently collaborated with the renowned mobile wallet Mobily Pay, which is enabled by Mobily — the leading telecommunications and digital service provider in Saudi Arabia. The tie-up will introduce the innovative money transfer capabilities of MoneyGram on the Mobily Pay mobile wallet, which will enable millions of Saudi Arabian consumers to utilize the mobile wallet for making digital money transfers across the globe.
The latest move, which is likely to go live in later 2022, will leverage MGI’s global network of over 200 countries and regions to enable money transfers for the country’s Mobily Pay users. The tie-up marks yet another instance of financial technology companies accessing MoneyGram’s widespread global money transfer network through the successful integration of MGI’s rapidly expanding white label offering. White labeling is basically a legal protocol that permits one product or service to be sold and rebranded under another company's brand.
Meanwhile, the collaboration in discussion is likely to be a win-win situation for both partners. The latest move is likely to pave the way for the cutting-edge API-backed infrastructure and superior technology of MoneyGram to boost the number of payments processed by it. Subsequently, MGI might witness an increased customer base across one of the biggest remittance countries and rapidly growing mobile wallets markets (Saudi Arabia). For Mobily Pay, the partnership will empower it to introduce services and enhance scale, thereby bolstering the prevailing digital offerings suite.
Through initiatives similar to the latest one, MoneyGram intends to deepen its leading market position in a fast-growing mobile wallet market. Mobile wallets emerged as one of the most popular contactless payment methods amid the COVID-19 pandemic. Factors such as the fast pace of globalization, prosperous cross-border trade, higher usage of smartphones and increased Internet penetration continue to contribute to the growth of the global mobile wallet market, per a report published by the strategic consulting and market research firm BlueWeave Consulting. Per the same source, the market is anticipated to witness a CAGR of 25% over the 2018-2028 period. Such promising growth prospects substantiate the timeliness of MoneyGram’s recent digital alliance with Mobily Pay.
Another notable endeavor of MoneyGram clearly highlighted through the latest initiative in Saudi Arabia is its keen interest in boosting digital growth in the Middle East. There are a number of reasons for MGI’s intensified focus on capturing growth prospects of the Middle East market. Growing demand for contactless payments accelerated by the COVID-19 pandemic, higher smartphone usage by the tech-savvy population and an increased Internet penetration persuaded several digital platforms to penetrate the region, and MoneyGram, which boasts a strong digital arm, followed suit.
It took years for MoneyGram to build a robust digital platform through continuous partnerships and technological advancements. These efforts bore fruits as MGI can now be counted among one of the leading and most trustworthy international money transfer companies. In spite of the success achieved, MoneyGram remains focused on opportunities to enhance its digital platform. As a testament to the same, MGI agreed to be acquired by Chicago-based private equity firm Madison Dearborn Partners, LLC for $1.8 billion. Expected to close in the fourth quarter of 2022, the buyout is likely to upgrade MoneyGram’s digital platform by utilizing the acquirer’s payments prowess and experience in boosting the digital business.
Shares of MoneyGram have gained 45.8% in the past six months against the industry’s decline of 11.2%.
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MGI currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the Finance space are CB Financial Services, Inc. CBFV, East West Bancorp, Inc. EWBC and First Republic Bank FRC. While CB Financial Services flaunts a Zacks Rank #1 (Strong Buy), East West Bancorp and First Republic Bank carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CB Financial Services delivered a trailing four-quarter earnings surprise of 18.65%, on average. The Zacks Consensus Estimate for CBFV’s 2022 earnings suggests an improvement of 20.5% from the corresponding year-ago reported figures. The consensus mark for CB Financial Services’ 2022 earnings has moved 19.3% north in the past 60 days.
The bottom line of East West Bancorp outpaced estimates in three of the last four quarters and missed once, the average surprise being 6.25%. The Zacks Consensus Estimate for EWBC’s 2022 earnings suggests an improvement of 14.9%, while the same for revenues suggests growth of 16.5% from the corresponding year-ago reported figures. The consensus mark for East West Bancorp’s 2022 earnings has moved 6.2% north in the past 60 days.
First Republic Bank’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.36%. The Zacks Consensus Estimate for FRC’s 2022 earnings suggests an improvement of 10%, while the same for revenues suggests growth of 18.6% from the corresponding year-ago reported figures. The consensus mark for First Republic Bank’s 2022 earnings has moved 2.4% north in the past 60 days.
Shares of CB Financial Services, East West Bancorp and First Republic Bank have lost 1.2%, 4.6% and 27.3%, respectively, in the past six months.
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