MoneyGram Payment Systems announces major tie-up with Federal Bank

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MoneyGram continues to expand by forming a strategic tie-up with one of the very best – Federal Bank. From now on, the bank’s customers can have remittances sent directly to their accounts, which eliminates the need to leave their homes.

MoneyGram is the global leader in cross-border P2P(peer to peer) payments and global transfers. The company operates in more than 200 countries. The company said on Thursday that it has entered into a partnership with Federal Bank, through which millions will be able to receive deposits directly in their bank accounts without leaving the confines off their homes in this pandemic period.

According to the World Bank, India remains the world’s top recipient of remittances and is estimated to have received more than 82 billion dollars in remittances in 2019. This is proof that the country is experiencing a surge in cross-border payments and requires better processes to make it quicker and smoother.

Shalini Warrier, Executive Director of Federal Bank said that the tie-up clearly shows the use of innovative technology with which the company delivers to its customers. This is hardly the only good news from MoneyGram. The firm seems to be capitalizing on the act that quick money transfer is a basic need in current rough times. It saw exponential growth in customer numbers in the last few months. MoneyGram witnessed a growth of 81% in the number of transactions in April compared to this year.

Federal Bank which enjoys a market share of more than 15% of the remittance market in India, after the tie-up with MoneyGram, a further boost to business is expected. While the entire country is battling a pandemic with most areas in strict lockdown along with the challenge of insufficient cash flow, this move will be beneficial for many.

MoneyGram Chief Revenue Officer Grant Lines said that” This partnership is especially important during this ongoing COVID-19 pandemic so families can receive money from the comfort of their own home.”

Indeed, the world is moving from the traditional banking system to a more digital-driven era. The question lies whether Indian banks will take the leap of faith and start encouraging the use of cryptocurrency soon.

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