MoneyGram

MoneyGram International, Inc

File:MoneyGram Logo.svg
Company type	Private
Industry	Financial services
Founded	1998 (1998)
Headquarters	Dallas, Texas, United States
Key people	Anthony Soohoo (CEO) Gary Ferrera (CFO)
Products	Money transfers Money orders Official check Bill payment services
Revenue	$900 Million (2019)
Owner	Madison Dearborn Partners (2023–present)
Number of employees	2,269 (2020)
Website	moneygram.com

MoneyGram International, Inc. is a U.S.-based enterprise headquartered in Dallas, Texas, focusing on domestic and cross-border peer-to-peer payment solutions and electronic funds transfers. The company operates a key processing facility in St. Louis Park, Minnesota and maintains several regional offices around the world.

On June 1, 2023, MoneyGram was acquired by the private equity firm Madison Dearborn Partners.

Overview

MoneyGram’s operations are structured around two main segments: Global Funds Transfers and Financial Paper Products. It delivers services to both individual consumers and corporate clients through a widespread network of agents and partner financial institutions.

By 2014, MoneyGram had established itself as the second-largest global money transfer provider, with a presence spanning over 200 countries and close to 400,000 agent locations internationally.

History

The formation of MoneyGram International resulted from the merger between Travelers Express, based in Minneapolis, and Integrated Payment Systems Inc., headquartered in Denver. Originally a subsidiary of Integrated Payment Systems, MoneyGram gained independence before being acquired by Travelers Express in 1998. In 2004, Travelers Express adopted the MoneyGram International name as part of its rebranding efforts.

Travelers Express (1940–1997)

Founded in 1940 in Minneapolis, Travelers Express Co. Inc. was purchased by The Greyhound Corporation (later known as Viad Corp) in 1965. It grew to become the largest provider of money orders in the United States before restructuring its business model in 1993.

MoneyGram Systems (1988–1997)

Established in 1988 as a division of Integrated Payment Systems Inc.—which was under First Data Corporation, a former subsidiary of American Express—MoneyGram underwent significant changes following First Data’s spin-off from NYSE in 1992 and its merger with Western Union’s parent company. The Federal Trade Commission subsequently required the divestiture of Integrated Payment Systems.

In 1994, Thomas Cook Global Foreign Exchange, under the leadership of John Bavister, collaborated with First Data to introduce the MoneyGram money transfer service. By 1996, Integrated Payment Systems had become publicly traded as MoneyGram Payment Systems Inc., appointing James F. Calvano—former president of Western Union—as CEO in 1997. At that point, MoneyGram operated more than 22,000 locations across roughly 100 countries.

Following MoneyGram’s initial public offering in 1997, MoneyGram International Ltd. was established as a joint venture between MoneyGram Payment Systems (holding 51%) and Thomas Cook Group (holding 49%), facilitating expansion of MoneyGram’s global reach and market presence.

MoneyGram International (1998–present)

In April 1998, Viad Corp purchased MoneyGram Payment Systems Inc. for $287 million, incorporating it into Viad's Travelers Express division based in Minneapolis. By November 2000, the MoneyGram brand was transferred to Travelex as part of its acquisition of Thomas Cook Financial Services. In 2003, Travelers Express reacquired full control of MoneyGram and subsequently spun it off as a standalone company. The following January, Travelers Express adopted the name MoneyGram International Inc., and in June 2004, Viad divested MoneyGram, establishing it as a publicly traded corporation.

By 2006, MoneyGram had grown to include more than 96,000 agents across regions such as Asia-Pacific, Eastern Europe, and Central America, expanding its offerings to include bill payment solutions and online money transfers. Nevertheless, during the 2008 financial crisis, the company’s stock value dropped by 96%, with losses exceeding $1.6 billion due to exposure to high-risk mortgage-backed securities. This financial strain resulted in a majority ownership transfer to Thomas H. Lee Partners and Goldman Sachs to inject much-needed capital. The firm returned to profitability by 2009.

Pamela Patsley took on the role of executive chairwoman in January 2009 and was appointed CEO in September of the same year, spearheading a strategic recovery plan. In November 2010, MoneyGram shifted its global headquarters to Dallas, Texas, while retaining its IT operations in Minneapolis.

After losing its partnership with Wal-Mart in 2014, MoneyGram undertook restructuring efforts aimed at cost reduction. From their peak in 2013 through late 2015, shares fell approximately 70%. The company shuttered call centers in Lakewood, Colorado (resulting in 500 job cuts) and Brooklyn Center (with 376 employees affected), relocating numerous positions to Warsaw, Poland to enhance operational efficiency.

By 2015, MoneyGram’s agent network in Africa had expanded to 25,000 locations, including a collaboration with the Mauritius Post Office. Between late 2016 and early 2017, the company’s share price doubled amid acquisition interest from Ant Financial Services Group, which proposed an $880 million offer that was ultimately blocked by U.S. regulatory authorities.

In June 2019, MoneyGram entered into a partnership with Ripple Labs to utilize XRP for international remittances but discontinued this alliance in February 2021 following regulatory issues faced by Ripple. Subsequently, MoneyGram formed a new collaboration with Stellar, a competitor of Ripple, to facilitate blockchain settlements using the USDC stablecoin.

In July 2020, MoneyGram joined forces with Digital Financial Services LLC to enable cross-border remittances via eWallets within the UAE. This partnership allows real-time transfers across over 200 countries through mobile wallets, bank deposits, and more than 350,000 physical locations.

In February 2022, Madison Dearborn Partners announced an agreement to acquire MoneyGram for $1 billion in cash; this transaction was completed in June 2023.

Money transfers

• MoneyGram Money Transfer
• MoneyGram Bill Payments Services – providing consumers with options for urgent or routine payments to selected creditors.
• MoneyGram as a Service – delivers enterprise customers scalable access to core company functionalities as productized service offerings.

Financial instruments

• Money Orders – MoneyGram ranks as the second largest provider of money order services.
• Official Checks – The company offers outsourced official check solutions to U.S. financial institutions, fulfilling payee demands and institutional requirements.

Digital currency

• Cryptocurrency Cash Network – Through a collaboration with Coinme, MoneyGram enables customers to purchase or convert bitcoin into U.S. dollars at select retail outlets.

Litigation

In 2012, MoneyGram acknowledged breaches of anti-money laundering (AML) regulations and wire fraud statutes due to inadequate AML safeguards and facilitating wire fraud scams targeting consumers in the United States. The firm created a $100 million fund for victim restitution and appointed an independent corporate monitor reporting to the United States Department of Justice for more than seven years. Upon fulfilling the deferred prosecution agreement terms in 2021, charges were dropped.

After this resolution, MoneyGram dismissed implicated agents and allocated over $84 million toward anti-fraud technologies and consumer awareness initiatives. In 2015, the company contributed to dismantling a fraud operation exploiting its accounts.

In 2016, MoneyGram consented to pay $13 million to settle a nationwide investigation into complaints related to scams, covering customer reimbursements and state regulatory fees.

In 2022, both the U.S. Consumer Financial Protection Bureau and New York Attorney General initiated legal action alleging repeated infractions such as delayed fund transfers, inaccurate sender data, and inadequate complaint resolution under the 2013 remittance regulation.

In September 2024, the U.S. District Court for the Eastern District of Texas ruled that the CFPB exceeded its regulatory authority over “unfair acts” under Dodd-Frank when revising its examination manual. The CFPB has appealed to the Supreme Court, resulting in a suspension of most major litigation involving the agency pending judicial review.

Corporate social responsibility and branding

Established in 2013, the MoneyGram Foundation distributes grants globally with a focus on education, supporting initiatives in 19 countries during its inaugural year. Primarily financed by MoneyGram International, it expands upon the company’s earlier Global Giving Program.

Via MoneyGram, Global Giving contributed $100,000 to World Vision International for educational causes and $30,000 to Dallas-based Girls Exploring Math and Science. The company has also aided disaster relief by lowering fees and providing grants: implementing $1 transaction fees alongside a $10,000 grant after the 2010 Haiti earthquake; pledging $200,000 to the American Red Cross following Hurricane Sandy in 2012; and donating $50,000 after Typhoon Haiyan struck the Philippines in 2013.

The MoneyGram Foundation collaborates with organizations such as One Laptop per Child and Habitat for Humanity, having committed upwards of $1 million to the latter.

In October 2022, MoneyGram secured a multi-year title sponsorship agreement with the Haas F1 Team, rebranding it as the MoneyGram Haas F1 Team starting with the 2023 Formula One season.

By late 2023, MoneyGram processed more than 955,000 transactions exceeding $307 million for partners Red Rose and the United Nations High Commission for Refugees (UNHCR), delivering vital assistance across seven European nations including Ukraine, Poland, and Romania.

External links

• Official website of MoneyGram