MoneyGram International Inc. MGI has collaborated with First Abu Dhabi Bank, payit wallet, which is the first fully-featured digital wallet in the UAE.
With this alliance, the wallet is now connected to MoneyGram's unique, cross-border money transfer platform. It will have complete access to MoneyGram's wide global network as well as 50 million of users that take help of the MoneyGram platform on an annual basis.
UAE presents an attractive market opportunity for MoneyGram. Per the World Bank, people in the UAE send over $44 billion in remittances annually and with the countrywide smartphone penetration of around 80%, this deal allows more residents in the UAE to send fund from their payit wallet to people living in more than 200 countries and territories.
Payit seems to be the best fit for MoneyGram as together these will be able to cater to the increasing population by offering them with the safest and the most seamless cross-border money transfer service in the market.
Notably, Payit was able to integrate into MoneyGram's platform by using the latest set of Application Programming Interface. Several other companies have tied up with MoneyGram in the past as well to use its enriched compliance engine and settlement systems as well as its connection with 2 billion bank accounts along with multiple physical locations.
MoneyGram constantly put in efforts to expand the Digital/Self-Service portfolio. As part of its initiatives, the company invested in building an API-driven infrastructure that allows third-parties to integrate easily into its advanced, global platform.
It should be noted that revenues from the company's Digital/Self-Service have been increasing consistently since 2013 through 2018. Its investment in innovative products and services, particularly Digital/Self-Service solutions such as moneygram.com, mobile solutions, account deposit and kiosk-based services help to enhance revenue growth and diversify product offerings.
The expansion of the company's digital solutions through wallets and account deposits is part of its plan. It is also working to improve themobile app and many corresponding programs, a combination, which will enhance digital capabilities. These investments will make it a digitally enabled customer-centric organization.
Shares of this Zacks Rank #3 (Hold) company have lost 74.3% in a year's time, wider than its industry 's decline of 7%.
Stocks That Warrant a Look
Some better-ranked stocks from the same sector are Oaktree Specialty Lending Corporation OCSL ,Virtu Financial, Inc. VIRT and Euronet Worldwide, Inc. EEFT , each currently carrying a Zacks Rank #2 (Buy).
Oaktree Specialty is a business development company. It managed to come up with positive results in the trailing four quarters, the average beat being 10.10%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Virtu Financial provides market making and liquidity services to the financial markets worldwide. The company recorded average beat of 0.63% in the last four quarters.
Euronet Worldwide, Inc. offers payment and transaction processing plus distribution solutions to financial institutions, retailers, service providers and individual consumers worldwide. The company delivered average trailing four-quarter beat of 2.68%.
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