MoneyGram International, Inc. (MGI – (Free Report) recently announced a strategic minority investment in Coinme, a cryptocurrency exchange. The investment move, after a Series 1 funding round, gave MoneyGram about a 4% ownership stake in the crypto ATM operator.
The latest move supports MoneyGram’s partnership with Coinme. Last May, the two companies partnered to expand access to cryptocurrency exchanges. It has created a crypto-to-cash model and thousands of retail locations in the United States to trade bitcoin. Moreover, the two companies have additional plans to strengthen their partnership.
The latest move is expected to support MoneyGram’s innovative efforts and position it well for the use of blockchain technology. The growing partnership with the cryptocurrency company opens MGI’s business to a new customer segment and diversifies its revenue streams. MGI’s massive global infrastructure and network, along with strategic investments, will likely enable the partnership to expand into international markets.
MoneyGram’s partnership with Coinme is crucial as it aims to strengthen the cryptocurrency ecosystem and reduce the gap between cryptocurrency and traditional finance. This is a growing space and MGI is expected to benefit from the growing demand for crypto services. Many other big companies are working hard to grab a share of this huge lucrative market.
Last month , Visa company (Fifth – Free Report) its partnership with Company Nuvei (NVEI – Free Report) to roll out crypto-friendly debit cards in Europe and reduce the cryptocurrency gap. The new cards will use Visa’s primary membership and EMI authorization to serve customers simply by spending cryptocurrency anywhere Visa is received. Simplex Banking Nuvei will enable customers to provide a simplified process for converting digital currencies to cryptocurrency on and off the ramp. It will help customers to use and spend crypto sales funds in a unified manner.
In July 2021, MasterCard Incorporated (MA – Free Report) has partnered with a series of crypto companies in an effort to unravel a card offering and offer seamless cryptocurrency conversion. Mastercard is partnering with cryptocurrency platforms to take advantage of the growing number of consumers entering the crypto space. MA’s constant endeavors to offer digital currency wallets and a seamless exchange experience result in more consumers turning towards crypto cards to purchase digital assets or incur spending. In early November, Mastercard announced a partnership with Amber Group, Bitkub and CoinJar to provide crypto-funded Mastercard payment cards in the Asia Pacific region.
Price performance and Zacks ranking
MoneyGram’s shares are up 12.4% in the past year compared to the industry’s 16.9% rise.
Image source: Zacks Investment Research
MoneyGram is currently ranked #3 by Zacks (Hold).
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