Western Union (NYSE: WU) is reportedly seeking to acquire digital money transfer service MoneyGram (NASDAQ: MGI). The acquisition rumors come just a little over a month after Western Union announced the continued expansion of its Global Network for real-time money-movement and payments.
MoneyGram describes itself as a global provider of innovative money transfer services and is recognized worldwide as a financial connection to friends and family. The company offers person-to-person money transfer and payment services in more than 200 countries and territories through a global network of approximately 350,000 locations, working with retailers, international post offices, and banks.
“MoneyGram also offers bill payment services, issues money orders and processes official checks in select markets. The company is committed to providing affordable, reliable, secure and convenient payment services to consumers around the world.”
According to Bloomberg, Western Union has made an offer to take over MoneyGram, which has notably been in decline as more consumers are continuing to use online payments. The media outlet further revealed that MoneyGram has also been struggling through the COVID-19 pandemic.
Despite this, MoneyGram recently announced it has joined forces with E9Pay, a money transfer and payment fintech company based in Korea. Through the collaboration, E9Pay customers are able to connect to the MoneyGram platform and distribution network in more than 200 countries and territories. Alex Holmes MoneyGram Chairman and CEO, stated at the time:
“As we continue to closely manage the ongoing COVID-19 situation, we’re also continuing to push forward on our strategy. E9Pay has a strong culture of innovation with a loyal customer base of avid users, and this partnership enables E9Pay customers access to our global platform, including our account deposit capabilities.”
No information has been revealed about the potential sale.