MoneyGram International Inc. (MGI) consolidated a bit on Thursday as it share price dropped -3.51 percent to $7.02.
The company last Thursday, announced that its international transaction revenue in October increased 150 percent. The news was a driver for MGI shares to rise in trading on November 13 by more than 20 percent.
Foreign sales in its MoneyGram Online (MGO) service soared 150 percent year-on-year in October, according to a report from global leader in cross-border P2P payments and money transfers. For this market segment, this was the tenth consecutive month of triple-digit growth. Despite growing competition from other payment systems, MGI remained successful to post such impressive development, which highlights the durability of its brand and its ability to retain market share in a competitive world.
For digital payment services, such as MoneyGram International, the past quarters have provided a favorable climate. Users have decreased their use of cash because of the momentum of e-Commerce, as well as the risk of infection. Thus all the efforts in the digital payments segment that the Dallas, Texas-based company has made in recent months have paid off.
Consumers in more than 75 countries are able to use the MGI’s mobile app and its related digital products. The business saw high demand for almost the entire range of products during the COVID-19 pandemic. As many users have enjoyed the convenience of digital calculations, it is likely that trends created by the pandemic will be important in the medium term. An online service for money transfer between individuals, which is available in 380,000 retail outlets around the world, can also be the growth point for MoneyGram which also provides banking and billing software.
The stock of MoneyGram International Inc. (MGI) is trading up 234.29 percent from start of the year and has market capitalization of $421.69 million.