MoneyGram International, Inc. (NASDAQ: MGI), a leading international peer-to-peer (P2P) payments and money transfer service provider, revealed on January 23 that it has teamed up with the Suez Canal Bank, an established financial institution that will allow MoneyGram clients to send funds directly to the bank accounts of their friends and family members based in Egypt.
The new development aims to strengthen MoneyGram’s presence in Egypt as the money transfer service will now have access to the institution’s large network of correspondent banks across the globe. Suez Canal Bank will be connecting to the MoneyGram platform in order to provide the new account deposit services to its clients. Customers will be able to take advantage of improved, digitally-enhanced convenience and a better overall experience.
Grant Lines, chief revenue officer at MoneyGram, stated:
“As we execute our digital transformation to lead the industry in the digital movement of money, a key strategic priority is expanding account deposit services in major international markets.”
Lines added:
“We’re [quite pleased] about how this partnership with Suez Canal Bank will provide our customers in Egypt with cutting-edge capabilities that offer the industry’s best service.”
Mahmoud Shehab, head of financial institutions at Suez Canal Bank, noted that partnering with MoneyGram will benefit both organizations as they aim to expand their current share of Egypt’s remittances business.
MoneyGram has been striving to become a leader in digital innovation by providing money transfer services through many different omnichannel solutions, such as a mobile app, debit card deposit, and online wallet capabilities. MoneyGram has a physical and digital distribution network in more than 200 countries and jurisdictions. The company will now be able to offer Egyptians working overseas the option to send money back home to friends and family members.
The World Bank notes that Egypt is currently ranked fifth in terms of total global remittances, as the combined amount received surged 17% in 2018 to around $29 billion. Remittances also accounted for about 11.6% of Egypt’s national GDP in 2018. The remittance payments sector also accounts for the African nation’s second-largest source of foreign exchange income, right after earnings from exports.
MoneyGram’s partnership with Suez Canal Bank will aim to offer greater financial inclusion and allow the money transfer service’s clients to acquire additional resources to conveniently access their funds.