What happened
Shares of MoneyGram International (MGI) popped as much as 26% today after the company announced that it was expanding its Visa debit card deposit service in Europe. But by 3:15 p.m. EST on Friday, the stock had given back much of those gains and was up 8%.
So what
MoneyGram is partnering with fintech company Checkout.com for the initiative, which will allow MoneyGram users to send peer-to-peer (P2P) money transfers in what it calls "near real-time" to other debit card holders across 25 countries in Europe. The service will leverage Visa Direct, the payment processing giant's real-time push payments platform.
Image source: MoneyGram.
"Our strategic partnerships have enabled MoneyGram to create the world's leading network, and this expansion is another milestone on our journey to lead the evolution of digital P2P payments," MoneyGram CEO Alex Holmes said in a statement. "Consumer demand for real-time payments direct to bank account and mobile wallets continues to surge."
Now what
MoneyGram notes that Europe is one of the largest markets for the remittance industry. The company was the first to facilitate cross-border transfers from the U.S. using Visa Direct and has continued to expand.
MoneyGram has not yet scheduled its fourth-quarter earnings release. Guidance calls for total revenue growth of approximately 1%, with adjusted EBITDA forecast to grow by 10% thanks to cost savings related to digital transformation efforts. The company warned of ongoing economic uncertainties due to the pandemic.
