MoneyGram International Inc. reported on Friday (Oct. 30) as part of its earnings announcement that its online direct-to-consumer channel (MGO) saw 111 percent year-over-year transaction growth and 114 percent revenue growth in Q3.
Digital transactions comprised 27 percent of all money transfer transactions in Q3, according to the company.
“The amazing performance of our digital business drove yet another impressive quarter as the company continues to build upon its financial growth trajectory,” MoneyGram Chairman and CEO Alex Holmes said on a call with analysts. “Our consumer direct channel, MoneyGram Online, the largest component of our overall digital business, has been a catalyst for new customer acquisition.”
Holmes said that consumer demand for the company’s app has been skyrocketing, and 85 percent of its online transactions are now conducted on mobile devices.
Growth in the quarter was once again fueled by the company’s digital business on the strength of a 140 percent year-over-year rise in its active MoneyGram online cross-border customers, according to Holmes, who noted that growth in the quarter was also supported by the ongoing recovery of its walk-in business.
During the quarter, the company rolled out new partnerships with FinTech and telecommunications companies in Africa, grew its international account deposit and wallet presence, and solidified important relationships, such as a three-year renewal with Walmart.
As previously reported, MoneyGram extended its relationship with Walmart Inc. through March 2024. The arrangement means the firm’s services will continue to be available at over 4,700 Walmart locations in the U.S., Puerto Rico and at walmart.moneygram.com.
MoneyGram had $162.9 million in cash and cash equivalents at the conclusion of Q3 in contrast to $130.6 million at the conclusion of Q2. It also reported $23 million in Q3 interest expense.
As for its overall results, MoneyGram reported diluted adjusted earnings per share of 16 cents on total revenue of $323.2 million. The results exceeded analyst expectations of 7 cents per share of earnings on $307.74 million in revenue.