MoneyGram International (NYSE: MGI), a leading provider of global payment services, today announced that it will bring MoneyGram's money transfer service to thousands of additional Canada Post locations by year end, significantly expanding MoneyGram's agent network across the country.
The announcement follows the successful roll out of 2,000 additional Canada Post locations currently offering MoneyGram money transfer service. MoneyGram's continued expansion with Canada Post is the result of the implementation of the company's point of sale system throughout Canada Post's network.
An agent since 2002, Canada Post initially offered money transfer services in 1,000 locations. Based on the initial success of the relationship, last year the companies announced the expansion of their multi-year agreement to include money transfer service in 2,000 more outlets by June of 2009. The addition of this next wave of Canada Post locations will bring MoneyGram's money transfer service to Canada Post's network located from coast to coast across Canada.
"This continued expansion reflects the success of our relationship and the growth it's driving for both companies," said Dan O'Malley, senior vice president and president of the Americas for MoneyGram International. "Through Canada Post's expansive national network, we are delivering affordable, reliable and convenient money transfer services to more people across Canada. MoneyGram's integration into Canada Post's full network will bring our money transfer service to within 2.5 km of nearly 90 percent of all urban Canadians."
In addition to the network expansion, MoneyGram will introduce its MoneyGram Rewards® customer loyalty program in Canada this fall, offering members fee discounts, receive notices and fast and convenient form-free money transfers. MoneyGram Rewards was introduced in the United States in 2008 and members enjoy the benefits of a personalized card for expediting money transfers, immediate notification when funds are collected by the recipient, quarterly statements and the ability to manage their account and profile online. In Canada, MoneyGram Rewards customers will receive a 5 percent discount on all transactions.
"Our MoneyGram Rewards program attracts first-time customers to our services, and early results indicate these new customers are staying with our brand longer and transacting more often," said O'Malley.
"We are pleased to continue expanding this important relationship with MoneyGram as we automate all of our Post Offices with MoneyGram's enhanced point of sale system," said John Reis, director of retail for Canada Post. "MoneyGram's money transfer service complements our financial service offerings and drives new revenue and new customers into our locations every day."
Canada Post recently completed the upgrade to MoneyGram's AgentConnect system, bringing high-speed connectivity, making it faster and easier to expand the service into more Canada Post locations as well as provide quicker and more reliable service to enhance the customer experience. With the new point of sale system, it takes as little as 10 minutes to send a MoneyGram money transfer around the world, depending on a receiving agent's hours of operation.