Shares of MoneyGram International (NASDAQ:MGI) surged by more than 20% on Friday after the money transfer company said its direct-to-consumer business was growing at a torrid clip.
MoneyGram's cross-border revenue in its direct-to-consumer digital business, MoneyGram Online (MGO), skyrocketed 150% year over year in October. It marked the 10th straight month of triple-digit expansion for this increasingly important growth driver.
Notably, MoneyGram's gains came despite intensifying competition in the digital payments arena from the likes of PayPal and Square. "These results continue to demonstrate our ability to capture share as we strengthen our market position due to the success of our customer-led digital transformation," CEO Alex Holmes said in a press release.
The coronavirus pandemic has accelerated the trend toward digital payments and away from cash transactions. MoneyGram wisely chose to invest in its mobile app in recent years, a move that's paying dividends today.
"Customers are choosing MoneyGram over other options because the app is easier to use, faster, and more affordable," Chief Operating Officer Kamila Chytil said. "As we execute our strategy to build upon our momentum in the market, we expect our direct-to-consumer digital business to continue to deliver profitable growth."