MoneyGram International (NYSE:MGI), a global leader in the payment services industry, announced an agreement with Online Resources Corporation, a leading provider of financial technology, to offer same-day cash payment services from any MoneyGram U.S. agent location to Online Resources billers.
Under the agreement, MoneyGram's walk-in, cash ExpressPayment service, which is accessible by consumers through nearly 35,000 agent locations nationwide, will be offered to customers using eCom AdvantageTM, Online Resources' comprehensive suite of electronic payment services to its biller clients in the financial services, utility, health care, insurance and other industries.
"In today's economic environment, billers and financial institutions are looking to accommodate the growing number of consumers who want to pay in cash or need to make a last-minute payment," said Greg Waltz, vice president and general manager of Payment Products at MoneyGram. "By partnering with MoneyGram, Online Resources makes a valuable service available for its clients, providing them with a cash payment alternative that expands their payment options and increases the likeliness of getting paid."
Through the agreement with MoneyGram, Online Resources' biller clients now can direct customers who want to pay in cash to MoneyGram agent locations found in national grocery, pharmacy and convenience store chains, including Albertsons LLC and CVS/pharmacy and Walmart. MoneyGram collects the guaranteed, cash payments and uses its proprietary payment tracking technology to provide billers with real-time payment notification. Online Resources will process the payments using its proprietary account-posting technology and e-Lockbox service, which minimize exceptions and further streamline the reconciliation process for billers.
"The electronic payment solutions we offer are designed to enable our biller clients to address their customers' varying payment preferences," said Bob Craig, executive vice president of eCommerce Services for Online Resources. "Our alliance with MoneyGram under this agreement will augment the breadth of payment options available to our biller clients and their customers, including those who prefer to transact in cash."
According to data compiled by Experian Simmons' spring 2009 adult consumer survey, 54 percent of U.S. adults cite cash as their preferred form of payment.
"Online Resources recognizes the value of a cash payment option available through a trusted brand with thousands of locations nationwide," said Waltz. "This will be an important growth area for MoneyGram as we leverage our significant network of agents to develop new strategic alliances with additional consolidators."