MoneyGram Online reports massive growth in online payments in April
MoneyGram International, a major payments processor that also handles P2P payments, has announced a big jump in transaction numbers for MoneyGram Online for the month of April along with a jump in revenue.
The company said that there was an increase of 95% year-on-year growth in the number of cross-border transactions which was one of the main reasons for a growth of 111% in the revenue for the month of April.
The pandemic period, though it had affected a lot of other industries, seems to have been a boon for the digital payments industry. With people unable to move out and deal in cash, digital payments were the only way for many people to send money to others.
People started using digital payments even for basic necessities and once they started realising the reliability and ease of transactions, many have continued to use it as they have now lost all inhibitions around digital payments.
This has helped the digital payments industry immensely over the last few months and all such major digital payments companies have reported surging volumes.
“Coming off a strong first quarter, we delivered impressive sequential growth in April, and our digital business continues to reach new heights with record customers and strong growth rates in monthly active users,” said Alex Holmes, MoneyGram Chairman, and CEO. “With our current growth trajectory, we expect the digital business to cross 50% of all money transfer transactions in 2024, which marks an incredibly rapid transformation of our company.”
MoneyGram also reported that 86% of all the transactions were done through mobile which is another important development that we have seen during the pandemic period. People, over the last few years, have preferred using their mobiles for online activity but the last few months have seen a surge in the usage of mobiles for online activity as users begin to realise the importance of being in touch.
Holmes concluded: “The size, growth rates and profitably of our digital business has redefined MoneyGram as a meaningful financial technology company, and we continue to innovate to lead the evolution of digital P2P payments.”
It is expected that the digital payments industry would continue to grow in the coming months irrespective of whether the pandemic continues to last or not. The pandemic seems to have been the tip-off point for this industry and now we should see that the usage would continue to show high numbers in the coming months as more and more people shift to the ease and convenience of digital payments.
The digital payment companies would also do well if they continue to innovate with ease of transaction, safety, and customer satisfaction being held as the key points to drive growth and upgrades.