Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
MoneyGram International Inc, which is one of the major Ripple’s partners, has revealed that it had a bad fourth quarter of 2019, especially if compared to results in Q4 2018. The stock is in red.
MoneyGram International Inc (NASDAQ: MGI) stock is trading at around $2.38 at the moment of writing which indicated that the stock has lost over 7% since the last closing. Ripple and MoneyGram International Inc are making significant moves to keep the service on the top of the remittance market. The MoneyGram Chairman and CEO Alex Holmes noted:
“We have invested proactively during the past several years to re-position MoneyGram as a modern, mobile, API-driven organization that is leading the evolution of digital P2P payments.”
MoneyGram has released the usual business report on February 25, 2020. Per the document, diluted loss per share is $0,16, and adjusted income per share is $0,01. In the last three months of 2019, there are $323,7 million in gains. During Q4 2019, the company got a significant 6% profit decrease compared to the previous year.
However, MoneyGram Online service had received a 39% growth during the Q4 2019. The results are driving this company’s service to receive a 113% growth in transaction demand and 53% growth in profits. The company is demonstrating a significant boost in expense cuts, conquering digital space and using new cross-border payment technologies:
“Our direct-to-consumer digital business achieved strong growth rates and international markets continued to outperform, which enabled us to return to transaction growth in December. Importantly, we also delivered record online digital transaction growth during the 2019 holiday season and reported Adjusted EBITDA for the fourth quarter that exceeded our expectations.”
Strong Revenue Streams: Will Ripple Help Out?
Partnership with Ripple has made a significant pledge to the company’s forward-looking image. Also, the company’s new FastSend transaction service gained the company a wild number of new clients, according to the metrics. It is useful when you want to send money to someone using only a phone number.
Interestingly, after having a consultation with the SEC representatives, MoneyGram chose to represent the additional $8,9 million made in profits with Ripple as ‘contra expense‘. So, the real loss percentage is smaller than the official reports, but the laws effectively hide the achievement.
Asia Pacific Welcomes MoneyGram for International Payments
MoneyGram is making significant progress in the Asia Pacific region. MoneyGram APAC Head, Anil Kapur, said:
“How MoneyGram works is simple. Anyone who wants to remit money goes to a partner outlet pays the money and provides details of the receiver. In exchange, he or she gets a code to send to the receiver. The receiver takes the code, walks into a partner outlet in his or her country, shows identification, and collects the funds.”
The new payment option is available in Australia and will soon start working in Singapore. It will allow sending the payments from the bank’s plastic cards to the bank accounts of your family members. The transfer will go in several hours from a client to a bank account. However, while sending the money to another MoneyGram branch overseas, the money is typically available for pick up in minutes.