MoneyGram enters RP market

After Western Union and Travelex, another global player has entered the local money transfer business to cash in on the booming remittance business from overseas Filipino workers (OFWs).

MoneyGram International Ltd., with a total branch network of 1,100 all over the country, has forged an alliance with local commercial banks and the country’s postal system to strengthen its position in the local money transfer business.

MoneyGram has forged an alliance with Equitable PCI Bank, Rizal Commercial Banking Corp. (RCBC), Bank of Commerce (BanCommerce), Philippine Postal Bank, and a number of rural banks.

It also entered into a deal with PeraGram and the Philippine Postal System.

"We continue to look for new partners to build our network to increase our accessibility to the market," said Nick Cunnew, regional director for Asia Pacific for Moneygram International.

Aside from remittances from OFWs and Filipino migrants, the money transfer specialist hopes to introduce products that would cater to the student population and local travelers via its cash-to-cash money transfer product.

"We are still looking at what kind of products would suit the Philippine market," Cunnew added.

MoneyGram said it would take approximately 10 minutes for money transfers from overseas to the Philippines subject to all the regulations of the host country.

The company is located in 160 countries in 60,000 locations worldwide.

Earlier, Travelex worked out an alliance with Equitable for remittances coming from France. The Travelex group also forged an alliance with the Metropolitan Bank and Trust Co. (Metrobank) covering all locations in the world which has a Metrobank branch or receiving or business centers.

Remittances from OFWs last year reached a record $7.6-billion. It is expected to grow by three-percent to $7.8 billion this year.

There are over 7.5 million overseas Filipinos sending money back to the Philippines with one million in Saudi Arabia alone. Average remittance to the Philippines is $300 per month per person.

Dollar remittances account for 16 percent of the country’s current account receipts and 10-percent of gross domestic product (GDP).

Worldwide, the fund transfer business is said to have reached over $130-billion in the past two years.