Jamaica’s leading remittance services providers Moneygram and Western Union (offered by GraceKennedy Remittance Services) are pointing to improved market positioning 15 months after the advent of COVID-19.

Moneygram, in information sent from its regional office in the Caribbean, said the company remains a “market leader in Jamaica, commanding a significant share of the market.”

In an e-mail sent to the Jamaica Observer ‘s Caribbean Business Report, the company said that during the last 15 months, “inflows to Jamaica from MoneyGram significantly increased to record levels beginning in 2020, resulting in our increased market share numbers. “

Western Union, offered in partnership locally with GraceKennedy Remittance Services, is equally asserting improved market share over the last 15 months. Neither of the two companies shared specific numbers, but they both attribute growth to the increased use of digital platforms.

For the period April 1, 2020 to March 31, 2021, net remittance inflows of US$2917.0 million into Jamaica increased by 35.5 per cent or US$764.3 million relative to the previous corresponding period. This improvement resulted from an increase of 30.1 per cent or US$727.4 million in total remittance inflows aided by a decline of 14.0 per cent or US$36.9 million in total remittance outflows.

Over the 12 months prior, improvement in inflows resulted from an increase of 35.0 per cent in remittance companies’ flows, while other remittances (including from local banks) recorded an increase of 5.8 per cent. Group CEO of GraceKennedy Limited Don Wehby said, “Our remittance business has seen considerable growth in prior year and Q1 2021, in keeping with the trends reported by the BOJ. In fact, for Q1 2021 we are tracking ahead of the total market inflows, as published by the BOJ. We continue to dominate the market share.”

GraceKennedy Remittance Services Limited (GKRS) serves as the exclusive agent of Western Union in several Caribbean countries. Combined, the money services network has over 300 locations across Jamaica.

On May 4, 2021: The Western Union Company, based in the United States, reported first quarter revenue of US$1.2 billion up two per cent, year over year.

While not disclosing numbers for Jamaica, Wehby said, “GK’s Money Services segment increased both its revenue and PBT compared to the corresponding period of 2020. This increase was largely attributable to GKMS’ remittance business, which saw growth in inbound transactions.”

He said the company implemented an electronic registration system that allowed customers to register online for our direct to bank service which led to significant growth in service.

MoneyGram International last issued its quarterly earnings results on May 7, 2021. The financial services provider reported ($0.06) earnings per share for the quarter while the business earned US$310.10 million during the quarter.

The company, in partnership with Lasco Financial and other providers, has approximately 220 outlets in Jamaica. Management, in its comment on the Jamaican market, said, “In May of this year, MoneyGram reported its first quarter earnings (Jan 1- Mar 31, 2021). In the first quarter of 2021, revenue exceeded expectations with double-digit money transfer revenue growth of 12 per cent and transaction growth of 14 per cent driven by digital growth and MoneyGram Online, which soared to a record-breaking quarter for both revenue and transactions.

They added, “All this momentum has continued into the following months, where we’ve broken records and even achieved an all-time high for transactions and face in MoneyGram online.

The company said, “Across every region, our digital business continued to outperform with truly amazing growth throughout the quarter. At the end of March, digital transactions accounted for 32 per cent of all money transfer transactions — approximately double the percentage at the start of 2020.

Growth is credited with the success of MoneyGram Online, a direct-to-consumer digital platform that allows customers around the world to send money in near-real time to Jamaica through moneygram.com or the leading MoneyGram app.