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Why MoneyGram International Jumped 13% Today

By Howard Smith – Oct 13, 2020 at 3:18PM

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The money transfer and payments company released a strong September business update.

What happened

Shares of money transfer and digital payments company MoneyGram International (MGI) are up 13% as of 3 p.m. EDT on Tuesday, after rising as much as 18% earlier in the day. 

Today's update continues the momentum the company has carried over the past several months, with shares responding for a gain of over 70% since the start of 2020. 

So what

MoneyGram reported that September marked the ninth straight month of triple-digit cross-border transaction growth in its direct-to-consumer business. The segment, dubbed MoneyGram Online, grew 161% compared to the same period a year ago. 

image of digital money transfer from a smartphone to a wallet with globe in the background

Image source: Getty Images.

The company's mobile app and associated digital offerings are available to consumers in over 75 countries. The company has seen strong growth in its product suite throughout the pandemic as consumers increase digital interactions of all kinds.

"As COVID-19 and its ongoing impact on everyday life continues to create a new normal, we've increased our efforts on our direct-to-consumer digital business and our results continue to flourish," MoneyGram chief operating officer Kamila Chytil said in a statement. Chytil oversees the company's digital business. 

Now what

In addition to its online business, the financial transaction company enables people to transfer money between family and friends at almost 380,000 global retail locations. It also has a business solutions segment that includes banking and billing resources. 

The company's focus, however, is on person-to-person capabilities, which it has strengthened during the COVID-19 pandemic. "Over the past few months, we have continued to drive a phenomenal increase in monthly active users on our leading app," chairman and CEO Alex Holmes said in a statement.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

MoneyGram International Stock Quote
MoneyGram International
MGI
$10.92 (%)

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