MoneyGram partners with Mastercard for faster payments

Published 02/04/2025, 14:10
MoneyGram partners with Mastercard for faster payments

DALLAS and PURCHASE, N.Y. - MoneyGram, a global financial technology firm, has teamed up with Mastercard to enhance digital money movement for its customers, leveraging Mastercard’s money transfer solutions known as Mastercard Move. This collaboration aims to provide secure and near real-time payment services domestically and internationally. According to InvestingPro data, Mastercard stands as a prominent player in the Financial Services industry with a market capitalization of over $501 billion and maintains a "GREAT" financial health rating.

Customers using U.S.-issued Mastercard cards can now send funds to 38 eligible receiving markets with plans to expand further throughout 2025. Mastercard Move also facilitates the receipt of money through nearly 10 billion endpoints worldwide, indicating a significant increase in financial accessibility. The company’s strong market position is reflected in its impressive 12.23% revenue growth over the last twelve months, with annual revenue reaching $28.17 billion.

The partnership between MoneyGram and Mastercard is set to improve the money transfer experience by offering faster transaction times and convenience, as well as lower fees. Both companies underscore the security and reliability of their services, attributing it to the strength of their respective networks. For detailed insights into Mastercard’s financial strength and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive ProTips and in-depth research reports.

Anthony Soohoo, CEO of MoneyGram, expressed enthusiasm about the partnership, highlighting its alignment with MoneyGram’s mission to make cross-border payments seamless and affordable. MoneyGram’s network spans 200 countries and territories, boasting around 450,000 retail locations and five billion digital endpoints.

Chiro Aikat, Co-President of Mastercard in the United States, emphasized the importance of efficient and secure money transfers for entry into the digital economy. By integrating Mastercard Move with MoneyGram’s extensive network, the companies aim to ensure that funds are transferred swiftly and securely, meeting the needs of customers in various locations.

MoneyGram is known for processing over $200 billion USD annually and serving more than 50 million people each year. Mastercard, with a presence in over 200 countries and territories, continues to support a wide range of digital payment options focused on security and accessibility. The company has demonstrated strong financial performance, maintaining dividend payments for 20 consecutive years with a 15.15% dividend growth in the last twelve months. Based on InvestingPro’s Fair Value analysis, Mastercard currently appears to be trading near its Fair Value.

This strategic alliance is expected to strengthen the capabilities of both MoneyGram and Mastercard in the competitive financial technology landscape. The information for this article is based on a press release statement.

In other recent news, Visa has made a significant move by offering $100 million to Apple in an attempt to replace Mastercard as the network for the Apple credit card. This bid is part of a larger contest involving major players like American Express, which is also vying for a dual role as both issuer and network. Meanwhile, UBS has highlighted the competitive advantages of Visa and Mastercard’s extensive cross-border operations, emphasizing their global reach and resilience to international regulations. These strengths are seen as crucial to their financial performance, according to UBS’s analysis.

Additionally, Mastercard has announced the appointment of Tim Murphy as Vice Chair, with Richard R. Verma rejoining as Chief Administrative Officer, both effective May 1. This executive reshuffle aims to enhance Mastercard’s strategic initiatives and regulatory relationships. In another development, Mastercard is reportedly considering a return to the Russian market after suspending operations there in 2022 due to geopolitical tensions. The potential re-entry would face challenges due to Russia’s adaptation to alternative payment systems.

Furthermore, Tigress Financial Partners has maintained a Strong Buy rating on Mastercard, raising the price target to $685. This follows Mastercard’s notable fourth-quarter revenue growth of 14% year-over-year, driven by its robust payment network and expansion of value-added services. Tigress Financial emphasizes Mastercard’s strategic focus on AI and its innovation in product development, projecting continued strong returns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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