MoneyGram International (NYSE:MGI), a global leader in the payment services industry, announced today an agreement to partner with CUNA Strategic Services (CSS), owned jointly by the Credit Union National Association (CUNA) and the state leagues, to provide 7,900 credit unions simplified access to MoneyGram's global money transfer and bill payment services.
The agreement extends a relationship that started more than 35 years ago when CSS began offering MoneyGram money order services to credit unions.
"Our 35-year relationship with CUNA Strategic Services provides a great framework for MoneyGram to help the 7,900 individual credit unions establish money transfer and walk-in bill payment services for their members," said Tim Summers, general manager Consumer Products - Americas for MoneyGram International. "Approximately 90 percent of these institutions do not offer the service today and MoneyGram provides a technology solution to easily connect each branch with person-to-person money transfer to more than 190 countries, and direct-to-account services in a growing number of locations including Mexico."
Consumers are increasingly turning to their local credit unions. Recently the AITE Group, a financial services research organization, issued a report summarizing that 85 percent of credit unions have increased their deposits over the last year and 70 percent have attracted deposits from banks. With new members and increased visits from members, credit unions are working to expand their services.
Wes Millar, senior vice president of CUNA Strategic Services said, "Consumers look to credit unions for trusted, valuable services to meet their financial needs. MoneyGram's convenient and reliable money transfer service provides a great opportunity for credit unions to immediately fill a gap in their services and attract new members. Last year, more than 6,000 credit unions implemented solutions offered via CUNA Strategic Services' partnerships. Expanding our relationship with MoneyGram to money transfer and bill payment services provides an instant opportunity for credit unions to enhance their products."
Under the agreement, the 7,900 credit unions, representing 21,000 individual branches in all 50 states and Puerto Rico, are eligible to implement MoneyGram money transfer and bill payment services. Once implemented, credit unions will be connected to the 180,000 agent locations in more than 190 countries and territories for money transfer services. MoneyGram ExpressPayment services are also available for payments to 2,200 U.S.-billers including mortgage and auto lenders. Many prepaid cards are also conveniently loaded with the MoneyGram ExpressPayment service including RushCard, Visa ReadyLink and Netspend cards.