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MoneyGram, the global provider of money transfer and payment services, plans to expand its footprint to 5,000 more locations in India this year, even as it explores tie-ups with banks and e-wallet companies to facilitate digital money transfers.
Currently, the company is present in 40,000 locations across the country.
“The Indian remittance market is the largest in the world. From the global perspective, it plays an incredibly important part in our business...So, there is a great focus on it,” said Joann Chatfield, Chief Marketing Officer, MoneyGram.
Among countries, the top remittance recipients in 2018 were India at $79 billion, followed by China ($67 billion), Mexico ($36 billion), Philippines ($34 billion), and Egypt ($29 billion), according to the World Bank’s latest Migration and Development Brief.
“Our strategy is to grow our retail footprint and at the same time make sure that retail locations meet the standards of MoneyGram when it comes to customer service and compliance requirements,” said Chatfield.
Principal-agent model
MoneyGram operates through the principal-agent model, where its principals such as Thomas Cook, Muthoot Finance, Unimoni, and Supreme Securities appoint agents, including their own branches and retail stores, so that customers can receive money at a location near them.
A senior MoneyGram India official said the company intends to have the right set of agents with the right capabilities to service customers. “We are constantly growing…So, this year, we will be adding about 5,000 locations,” the official said.
Tie-up with banks
MoneyGram is working on giving an option to customers where they can receive money either via their mobile banking app or e-wallet.
“For example, a customer can go into the mobile banking app of the bank we are partnering with, click on the MoneyGram icon, and key in the eight-digit code. So, the digital exchange of KYC will happen, and money will be received into either the bank account or the e-wallet,” the official said.
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