Western Union Co. is seeking to acquire MoneyGram International Inc. in a transaction that would bring together two of the largest U.S. providers of money-transfer services, according to a person familiar with the matter, according to Bloomberg.
Western Union has made a takeover offer for MoneyGram, said the person, who asked not to be identified because the matter isn’t public. No decision has been made and Western Union could opt to proceed without a deal, the person said.
The business has been in decline as more people use online payments. Financial-technology upstarts have taken aim at the industry, offering strong new competition to established companies. Meanwhile, policy makers are intent on trimming the fees associated with moving money around the world.
Dallas-based MoneyGram has struggled during the coronavirus pandemic, which has forced it to shutter operations around the globe as governments imposed shelter-in-place orders. While MoneyGram has boosted digital transactions, they made up just 18% of its money transfers in the first quarter, the company reported last month.
Governments and regulators around the world have long sought to cut the cost of remittances, which often cater to migrants who lack access to traditional bank accounts. On average, it costs $6.79 for every $100 in remittances sent overseas, according to data compiled by the World Bank.
„Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”