Moneygram International Inc. MGI announced an agreement with Postal Savings Bank of China Co. Ltd (PSBC), a large commercial retail bank in China, in an effort to expand its services in that country.
Per the agreement, Moneygram will provide money transfer services in over 3,700 locations. Moneygram’s successful cooperation with the Agricultural Bank of China will provide the Chinese working overseas with a fast, reliable and convenient money transfer service to their families in their homeland.
Agricultural Bank of China is a significant partner for Moneygram because of its large banking network in rural China, serving the areas where the families of migrant workers live.
China specifically appears an attractive destination for Moneygram. Dynamic factors such as increasing migration, both domestic and international, a boom in mobile Internet users and employment of effective and efficient policies by the government of China make room for growth in the region.
In Jan 2014, Moneygram entered into an agreement with Postal Savings Bank of China Co. Ltd., a large commercial retail bank in China, to provide money transfer services to over 3,700 locations.
Quite evidently, Moneygram is keen on expanding its reach in China. It is expected that in the next five years, China or rather Asia will be the top destination for global remittances. China has always been an important market for remittance considering the volume of the country’s overseas migrants.
Moreover, China qualifies as the second-largest receive country in the world. According to the World Bank, China received remittance amounting to $64 billion. MoneyGram's wide agent network of more than 20,000 locations in China provides convenient and reliable money transfer access to its customers in some of the smallest towns and in the largest cities in the country.
The company’s peer Western Union Co. WU also has a presence in China by virtue of a tie-up with Bank of China.
Moneygram carries a Zacks Rank #2 (Buy). Some other stocks worth considering in the same space are Blackhawk Network Holdings, Inc. HAWK and Consumer Portfolio Services, Inc. CPSS. Both these stocks carry the same Zacks Rank as Moneygram.
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