- Federal Bank will now allow direct-to-bank account credit option for customers in India after new deal with MoneyGram.
- MoneyGram witnessed a growth by 81% in the number of transactions in April compared to Q1 of this year.
Being one of the top users of financial remittances globally, India received circa $82bn worth transfers in 2019 according to the World Bank. This is proof that the country is experiencing a surge in cross-border payments and requires better processes to make it quicker and smoother.
Enter MoneyGram. The established international company operating since 1988 specializing in cross-border peer-to-peer payments and money transfers announced that it has entered into a partnership with the Federal Bank to offer cost-effective direct-to-bank account credit option for Indian customers.
The firm said that thanks to this collaboration, receiving deposits in their bank accounts without having to visit a bank will become simpler and increasingly secure for its millions of clients.
Given the current circumstances where the entire country is battling a pandemic with most areas in strict lockdown along with the challenge of insufficient cash flow, this move will be welcomed by many.
Commenting on the partnership MoneyGram Chief Revenue Officer Grant Lines said that:
“This partnership is especially important during this ongoing COVID-19 pandemic so families can receive money from the comfort of their own home.”
As per the statement, Federal Bank currently has a market share of circa 15% of the Indian remittance market and the new collaboration with MoneyGram will potentially boost its business further.
The bank’s Executive Director Shalini Warrier is bullish about the opportunities ahead as Indian citizens living around the world will now be able to remit money more efficiently. She said:
“Non-resident Indians can now enjoy a modern, low cost, fast, easy and more reliable way of transferring money to India. Being a leading player in the remittance and non-resident space, we are confident that this tie-up with MoneyGram will provide huge benefits to customers,” she added.
In fact, this is hardly the only good news from MoneyGram. The firm seems to be capitalizing on the fact that quick money transfer is a basic need in the current rough times. It saw an exponential growth in customer numbers in the last few months. It reported a 81% year-over-year transaction growth for its digital business in April – a massive acceleration from Q1 of 2020 where the company reported 57% transaction growth.
Indeed, the world is moving from the traditional banking system to a more digital-driven era. The question lies whether Indian banks will take the leap of faith and start encouraging the use of cryptocurrency in the near future.