MoneyGram International (NYSE: MGI), a leading global money transfer company, and India Post, the largest distribution postal network in the world, today announced that their existing agreement to offer money transfer services through India Post outlets has expanded from an initial 100 locations to more than 650 locations across the country.
In a presentation before community dignitaries and media today, MoneyGram officials discussed the importance of postal networks as part of its global distribution strategy, as well as plans for continued roll-out to additional locations of India Post in urban and rural areas of the country.
With 155,000 locations, India Post serves a critical role in facilitating the distribution of funds in a country where less than 50 percent of the population has a bank account. According to the World Bank, India is the world's largest inward remittance market, with $53.1 billion in incoming remittances last year.
"A key direction of MoneyGram's growth strategy is to get closer to our customers where they live and work," said Harsh Lambah, MoneyGram's senior regional director for South Asia. "Our relationship with India Post, and the planned growth of MoneyGram's presence in India Post locations, is a clear sign of the value that the two organizations bring to businesses and consumers across the country."
India Post and MoneyGram have planned joint marketing initiatives in several Indian states to support the expansion of the service. Through a promotion running in March and April, consumers who collect a MoneyGram transaction at a location of India Post will receive a free alarm clock, while supplies last.
"International inward remittances are playing an increasingly large role in the economies of many countries, contributing to economic growth and to the livelihoods of less prosperous people," said India Post's Shri Sachin Pilot, Hon'ble Minister of State for Communications & IT. "With MoneyGram, we will provide a valuable service to our customers, particularly in rural areas, who are not fully served by banks and other financial institutions, and it's our intent to expand MoneyGram services to more post offices as quickly as possible."
Lambah noted that MoneyGram's service is planned to expand to 5,000 India Post locations by 2014. The joint relationship and networks are expected to increase transactions from key remitter countries, including the United States, United Arab Emirates, the United Kingdom, Canada, Australia, and Saudi Arabia. MoneyGram also offers services through postal systems in Canada, Jamaica, Kazakhstan, Kenya, Italy, Poland, Ukraine, Moldova, and the United Kingdom.