MoneyGram partners with VM Money
VM Money Transfer Services Limited has inked an exclusive agreement with MoneyGram International Inc to allow customers to receive their remittances directly to their accounts.
The direct-to-account service was made official on October 6 in what is the first such partnership by MoneyGram in the Jamaican market. While customers could receive remittances directly to their Victoria Mutual Building Society (VMBS) accounts, this partnership expands the means by which customers can receive their funds. There are currently eight commercial banks in Jamaica while VMBS is one of the two building societies in the country.
“MoneyGram’s launch of direct-to-account services as part of its partnership with VM Money Transfer Services is a significant win for our customers. We are the exclusive provider of this service in Jamaica, and that is a tremendous benefit for the people we serve,” said Chief Executive Officer Michael Howard on the new service and what it means for customers.
VM Money Services also partners with WorldRemit, Xoom, Ria Money Transfer, and Remitly to process remittances for clients as well. VM Money Transfer has more than 80 locations through its distribution network across Jamaica and other countries such as the United States of America, Canada, the Cayman Islands, and Turks & Caicos. It opened its sixth VM Money Express location in February.
Other local MoneyGram partners include JN Money, Lasco Financial Services Limited, and Alliance Financial Services Limited. MoneyGram has more than 200 money transfer pickup locations in Jamaica.
Western Union launched the ‘cash-to-account’ service in 2016 and deployed it in Jamaica by 2018 through its exclusive partner GraceKennedy Money Transfer Services Limited. This allowed customers to receive remittances through Western Union to their bank accounts with seven commercial banks and VMBS.
Up to August, total remittance inflows increased by 13 per cent to US$307.2 million, with net remittances up 16 per cent to US$289.7 million. However, total remittance flows are down two per cent to US$1.47 billion for the April to August period with net remittances down slightly from US$1.40 billion to US$1.39 billion.
MoneyGram is currently in a US$1.8-billion deal in which it is expected to be acquired by Madison Dearborn Partners, LLC. MoneyGram shareholders overwhelmingly approved the acquisition in May with the current takeover priced at US$11 per share. The transaction is expected to be closed once customary closing conditions are met and regulatory approvals are received.
“My team has been unrelenting in our efforts to optimise convenience and service experience. We know time is precious and our customers deserve the best, hassle-free options when collecting their remittances. The move also signals MoneyGram’s confidence in VM Money Transfer Services. This exclusive partnership is only the beginning. We look forward to many great things coming from this new service and all that is to come in the future,” Howard added.
