Please ensure Javascript is enabled for purposes of website accessibility

Here's Why MoneyGram International Is Soaring Today

By Matthew Frankel, CFP® – Sep 10, 2019 at 12:32PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The money transfer company just scored a big partnership.

What happened

Money transfer company MoneyGram International (MGI 0.39%) has been one of the stock market's best performers recently. The stock had already more than tripled since June and is up by another 7% today.

As of noon EDT on Tuesday, MoneyGram shares were trading for about $5.70, as compared to a low of $1.33 reached at the end of May.

Most of the recent rally in MoneyGram can be attributed to the company's partnership with cryptocurrency company Ripple, which also took a substantial stake in MoneyGram. However, today's rally is for a different reason.

Stack of 10-dollar bills.

Image source: Getty Images.

So what

MoneyGram and Visa (V 2.20%) have announced a new partnership that will allow customers to send money to any Visa-branded debit card that's linked to a bank account. If you're curious, there are over one billion Visa debit cards in existence, so to say that this news greatly expands MoneyGram's reach would be a big understatement.

The point of the partnership is create an easy way for MoneyGram customers to send money directly to friends and family. Transactions will have a $1.99 fee, and with the momentum in the person-to-person payments space in recent years, it's not difficult to see how this could be a needle-moving component of MoneyGram's business.

Now what

Today's news isn't producing the most exciting move we've seen in MoneyGram stock recently, but it could be among the most significant headlines involving the company in recent times. MoneyGram's partnership with Visa could be a major catalyst for MoneyGram, and one that doesn't depend on the effectiveness of any cryptocurrency-related partnership.

Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Visa. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Visa Inc. Stock Quote
Visa Inc.
V
$185.65 (2.20%) $4.00
MoneyGram International, Inc. Stock Quote
MoneyGram International, Inc.
MGI
$10.41 (0.39%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.