Moneygram will now allow US customers to trade crypto on its app
Money transfer service MoneyGram has launched a new peer-to-peer service on its app to enable consumers to buy, sell and hold Bitcoin, Ethereum and Litecoin.
MoneyGram will roll out the service to US customers in the District of Columbia and all US states, except New York, Idaho and Hawaii.
MoneyGram to partner with Coinme
Digital currency exchange and software provider Coinme will provide backend support for MoneyGram’s new service. The company will expand the offering of cryptocurrencies on the app in 2023 according to global regulations. The expansion may include the remaining four cryptocurrencies offered by Coinme, namely MATIC, LINK, DOGE and XLM.
“As a next step in the evolution of MoneyGram, we are excited to provide our customers with access to a reliable and easy-to-use platform to securely buy, sell and hold select cryptocurrencies,” said MoneyGram CEO Alex Holmes.
MoneyGram also uses Coinme’s software at its thousands of ATM locations that allow crypto purchases with bank cards.
The company has previously collaborated with the Stellar Foundation. The agreement allows users with wallets on the Stellar blockchain to convert their holdings into USDC, which can be cashed out using MoneyGram’s network.
Can crypto benefit from core business?
By adding crypto services to its app, MoneyGram can bring in new customers. These would be customers who already use it for overseas transfers but have little exposure to crypto. In Q1 2022, the money transfer company reported that digital revenue reached an all-time high of $83 million. Later, in Q2, digital revenue increased to $92 million, indicating that the company is generating record revenue through its digital channels, including the app.
The World Bank has predicted that remittances to low- and middle-income regions will reach $630 billion by the end of 2022. Accordingly, in the first quarter of 2022, MoneyGram reported that cross-border transactions grew by approximately 20% compared to the previous year. The company also said in its first-quarter financial report that its cross-border customer base grew by 19%. The company’s Q2 report indicated that the same customer base increased by 11% compared to a year earlier. It declined to provide exact figures.
In a interview with CNN earlier this year, Holmes said that converting crypto to fiat and vice versa is costly. Perhaps this new partnership with Coinme is the answer.
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