Texas-based money transfer company MoneyGram reported a 207 percent increase in the number of digital transactions this year in its latest press release.
MoneyGram CEO Alex Holmes says the strongest growth figures to date were recorded in July:
“After a strong June report in which the company returned to year-over-year global revenue growth, we continued to see the underlying momentum strengthen as our customer-centric digital transformation delivered extremely strong results.”
Keeping Up with the FinTech Furya
Digitalization remains a key priority for one of the world’s largest money transfer companies, struggling to complement new fintech competitors like TransferWise and Remitly.
By focusing on a mobile app with MoneyGram Online, the company wants to increase its share of revenue from digital transactions. Last year, they were only responsible for 20 percent of MoneyGram’s business.
MoneyGram’s previous year transactions also jumped 106 percent in June compared to the previous year.
At that time, the company’s shares rose 14 percent on optimistic numbers. But this time, despite a record-breaking three-digit percentage increase, it actually fell two percent.
Capital Injection from Goldman Sachs to MoneyGram
According to the latest report, MoneyGram has recently been underestimated by investment bank Goldman Sachs. According to Goldman’s SEC report, he released $ 6 million worth of the company’s shares earlier this month.
MoneyGram’s shares fell more than 96 percent during the global financial crisis (GFC) from 2007 to 2009. Goldman injected capital into MoneyGram in exchange for a stake in the company.
The lion’s share of the company’s operating profit comes from blockchain partner Ripple, who pays “market development fees” to increase XRP’s liquidity.
