Since early August, MoneyGram stock has been one of the best-performing stocks in the market and has gained as much as 140% during this period.
For many years, money transfer giant MoneyGram International (NASDAQ:MGI) had been in the dumps for a variety of reasons, but 2019 has seen the company bouncing back in a remarkable fashion.
Why the Sudden Attention?
While the rally over the past month has been impressive, it is important to note that the stock has grown impressively since the end of May. At the time, the stock was trading at only $1.30, and today MoneyGram stock is trading at $5.97. Let’s have a look at how MoneyGram International engineered this turnaround.
One of the biggest developments in recent days from MoneyGram has been the announcement of its partnership with Visa (NYSE:V). According to the terms of the deal, MoneyGram users will now be able to send money directly to any Visa debit card anywhere in the world. Considering the fact that there are more than a billion Visa debit cards in existence, MoneyGram will have a much larger pool of recipients. Although the service costs $1.99 per transaction, it is a convenience that many people would prefer.
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MoneyGram stock is now up 4.77% at $5.97.
Moreover, the growth in the peer to peer payment sector over the last few years also indicates that this is the sort of service that could have a lot of traction for customers in many parts of the world. Now, it has been noticed that the market did not particularly react with great enthusiasm for this piece of news. However, it is a development that could eventually have far-reaching consequences for MoneyGram International as a money transfer business for the future.
As the payment systems in the world get more and more evolved, companies like MoneyGram will have to evolve. Due to this partnership with a behemoth like Visa, the company not only gets access to a large number of customers but also enhances its capabilities significantly.
What do you think of MoneyGram stock after the recent rally?
Featured image: DepositPhotos © kapustin_igor
