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MoneyGram: Major competitor to Western Union

You may have heard the name MoneyGram alongside big multinational financial service companies like Western Union, but you may not know what it is and how it functions. Getting to know various financial service providers and being able to compare and contrast them with one another is a big step for anyone active in the field of digital marketing.

MoneyGram: Major competitor to Western Union
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MoneyGram is the second-largest money transfer provider in the world, started as Travelers Express Co., Inc. back in 1940 in Minneapolis and shortly after became one of the world’s largest money order and electronic payment processors.

In this post we’ll get to know this financial service provider more exclusively and find out about its pros and cons. 

What is MoneyGram?

MoneyGram is an American cross-border P2P payments and money transfer company, which provides money transfer, money orders, bill payment, mobile top-up, and prepaid card reload services, to those who may not have a bank account or want to use an alternative service. As a major player in the world of online money transfers, MoneyGram offers online and in-person domestic and international money transfers to people who do not have bank accounts. Users can complete transactions by using cash, credit, debit card, or a bank account. After several years MoneyGram is now considered a brand that is trusted and recognized worldwide with a mid-market exchange rate, no hidden costs and low transparent fees.

How does MoneyGram work?

MoneyGram businesses are divided into two categories: Global Funds Transfers and Financial Paper Products. The Financial Paper Products segment provides money orders to consumers through its agents and financial institutions located throughout the United States and Puerto Rico and provides official check outsourcing services for banks and credit unions while The global funds transfer segment is in charge of money transfers and bill payments worldwide. MoneyGram operates its transfers through a network of agents and financial institutions. MoneyGram and Western Union have tens of thousands of agents in cities and towns around the world helping them facilitate and initiate transactions more fluently. 

MoneyGram pros and cons

Pros and Cons of MoneyGram

Before jumping in the big game, it is worthwhile knowing the advantages as well as the shortcomings just to know what to expect.

Pros of MoneyGram

MoneyGram helps send money to more than 200 countries and territories using more than 350,000 agents, mostly within a few minutes. Funds can be directly sent to a bank account or mobile wallet through multiple access points. In addition, when sending money to bank accounts, MoneyGram transfer fees are transparent and in some cases even absent

Cons of MoneyGram

If you wish to initiate an in-person transfer using MoneyGram you’ll need to use cash. MoneyGram fees are variable depending on the geographical region you are initiating your transaction in. Plus, not all senders have access to credit or debit cards. In countries like India, you can only send money in cash from an agent location. In some countries such as Mexico and Kenya the threshold for transferring money is low and holds on 990 USD and 708 USD.  

MoneyGram Fees

MoneyGram fees depend on three main factors including where you are located, the amount you are intending to transfer and your chosen payment method. If you are choosing to pay with a credit or debit card, then the fees are slightly higher but with a U.S. checking account the fees can be expected to decrease

MoneyGram safety

Safety of MoneyGram

MoneyGram is licensed in all 50 states of the United states as well as as the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and Guam. In the United Kingdom and the European Economic Area (EEA), MoneyGram International Limited is regulated by the Financial Conduct Authority and Her Majesty’s Revenue and Customs as an Authorized Payment Institution. The company is monitored by FINTRAC in Canada, which helps prevent money laundering and the financing of terrorist activities. 

Bottom line

Despite the great range of services MoneyGram provides for its users it has its own shortcomings. It’s a rather safe option for  bill payments, and a range of corporate products and services. However, it might not be the ultimate choice when it comes to payments which are being sent to a bank account directly in the case of fees and speed. You might be better off with PayPax online payment gateway and a PayPax account for international transfers which use the mid-market exchange rate with no hidden costs, and low transparent fees.

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