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In Q3 2020, MoneyGram continued to receive huge “market development fees” from its investors. Its major partner Ripple handed over $9.3 million over the period.
Money transfer company MoneyGram International Inc (NASDAQ: MGI) has joined other firms that shared their Q3 2020 financial results. The company has delivered its third-quarter earnings, amazing analysts with the figures.
For Q3 2020, MoneyGram has reported total revenue of $323.2 million, $297.6 million of which was brought by money transfers. Besides, it saw a 123% year-over-year increase in operating income, as well as an $18.6 million growth in net income. Further, the company’s total operating expenses totaled $286.6 million, which marked a $19.2 million or 6% improvement. Transaction and Operations Support expenses decreased $31.5 million or 56%. As for EPS, diluted earnings per share was $0.12, and diluted adjusted earnings per share was $0.16.
MoneyGram has also boasted excellent digital performance of its online direct-to-consumer channel (MGO). According to MoneyGram, MGO is the company’s largest generator of money transfer transactions. Year-over-year, MGO delivered 111% transaction growth and 114% revenue growth. MoneyGram has explained it by strong consumer demand for its app, high customer retention rates, and increased productivity rates. In general, digital transactions conducted by MoneyGram accounted for 27% of all money transfer transactions in the third quarter.
MoneyGram CEO Alex Holmes said:
“The amazing performance of our digital business drove yet another impressive quarter as the Company continues to build upon its financial growth trajectory. Our customer-centric strategy and growing active customer base helped deliver year-over-year money transfer revenue growth for the quarter, while the strength of our Adjusted EBITDA and cash flow demonstrate how our investments to build a scalable infrastructure are paying off. It’s exciting to see the successful execution of our digital transformation be a catalyst for sustainable and profitable growth.”
MoneyGram and Ripple’s Productive Collaboration
In the Q3 2020 report, MoneyGram has also said it continued to receive huge “market development fees” from its investors. Its major partner Ripple handed over $9.3 million over the period. In its Q2 2020 performance report released on July 30th, MoneyGram revealed that it received $15.1 million from Ripple.
Ripple has been investing in MoneyGram since 2018. Back then, Ripple and MoneyGram signed a partnership deal to pilot XRP in their payment flows. In 2019, the companies expanded their collaboration, and Ripple invested as much as $50 million in MoneyGram. The partnership is focusing on the xRapid product, a solution for on-demand liquidity, which reduces reliance on pre-funding by enabling to send money from one currency and instantly settled in the destination currency. It leverages XRP, the native digital asset of the XRP Ledger, as a real-time bridge between the sending and receiving currencies.