MONEYGRAM INTERNATIONAL, INC.

MONEYGRAM INTERNATIONAL, INC.

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Company Overview
MoneyGram International, Inc. (MGI) is a publicly quoted company primarily engaged as a financial services company. The company was founded in 1926. Its registered business office is headquartered in Minneapolis, Minnesota.
MoneyGram operates through two divisions that include: the Global Funds Transfer division and the Payment Systems division.
The Global Funds Transfer division provides the following: money transfer services, money orders, and walk-in and electronic bill payment services to un-banked, under banked, and convenience users. This division also offers its money transfer services on the Internet to residents in the United States, as well as through a network of retail agents in North America, Latin America, Western Europe, Eastern Europe, Africa, India, the Asia Pacific, and the Middle East.
The Payment Systems division primarily provides payment processing services that include: official check outsourcing and sale of money orders, as well as automated clearing house processing services to financial institutions, thrifts, and credit unions.
MoneyGram International distributes its products and services through national agent accounts, smaller independent accounts, and check cashing outlets.
Business Summary
MoneyGram International, Inc. (MoneyGram) is a global payment services company. The Company’s products include global money transfers, bill payment solutions and money orders. MoneyGram conducts its business through its wholly owned subsidiary MoneyGram Payment Systems, Inc. (MPSI). The Company operates in two segments: Global Funds Transfer and Financial Paper Products. In July 2008, the Company acquired MoneyCard World Express, S.A. (MoneyCard) and Cambios Sol S.A. (Cambios Sol), two of its former super-agents in Spain. On February 2, 2009, the Company acquired the French assets of R. Raphaels & Sons PLC (Raphaels Bank). On February 5, 2010, the Company acquired Blue Dolphin Financial Services N.V. (Blue Dolphin), a former super-agent in the Netherlands.
Description and history
MoneyGram International, Inc. (MoneyGram) is a global payment services company. The Company’s products include global money transfers, bill payment solutions and money orders. MoneyGram conducts its business through its wholly owned subsidiary MoneyGram Payment Systems, Inc. (MPSI). The Company operates in two segments: Global Funds Transfer and Financial Paper Products. In July 2008, the Company acquired MoneyCard World Express, S.A. (MoneyCard) and Cambios Sol S.A. (Cambios Sol), two of its former super-agents in Spain. On February 2, 2009, the Company acquired the French assets of R. Raphaels & Sons PLC (Raphaels Bank). On February 5, 2010, the Company acquired Blue Dolphin Financial Services N.V. (Blue Dolphin), a former super-agent in the Netherlands.

Global Funds Transfer

The Company’s Global Funds Transfer segment provides money transfer and bill payment services to consumers, who are often unbanked or underbanked. Unbanked consumers are those consumers who do not have a traditional relationship with a financial institution. Other consumers who use its services are convenience users and emergency users who may have a checking account with a financial institution, but prefer to use the Company’s services on the basis of convenience or to make emergency payments. MoneyGram offers services to consumers through third-party agents, including retail chains, independent retailers and financial institutions.

The Global Funds Transfer segment is managed as two geographical regions, the Americas and EMEAAP, to coordinate sales, agent management and marketing activities. The Americas region includes the United States, Canada, Mexico and Latin America, (including the Caribbean). The EMEAAP region includes Europe, the Middle East, Africa and the Asia Pacific region.

The Company provides Global Funds Transfer products and services utilizing a range of point-of-sale platforms. Its platforms include AgentConnect, which is integrated into an agent’s point-of-sale system, and DeltaWorks and Delta T3, which are separate software and stand-alone device platforms. Through its FormFree service, customers may contact its call center and a representative will collect transaction information over the telephone, entering it directly into its central data processing system. MoneyGram also operates two customer care centers in the United States, and it contract for additional call center services in Bulgaria and the Dominican Republic. It provides call center services round the clock and provides customer service in over 30 languages.

As of December 31, 2009, the Company offer money transfers to consumers in a choice of local currency, United States dollars or euros in 136 countries (multi-currency). Its multi-currency technology allows the Company to execute its money transfers directly between and among several different currencies. As of December 31, 2009, the Company’s agent network consisted of approximately 190,000 money transfer agent locations in approximately 190 countries and territories worldwide. MoneyGram’s bill payment services allow consumers to make urgent payments or pay routine bills through its network to certain creditors (billers). These industries include the credit card, mortgage, auto finance, telecommunications, corrections, satellite, property management, prepaid card and collections industries.

The Company’s bill payment services also enable consumers to load and reload prepaid debit cards. Consumers with any Visa ReadyLink-enabled prepaid card or any NetSpend prepaid debit card can add funds to their cards at any of its United States agent locations. It also offers its MoneyGram AccountNow Prepaid Visa card, which participates in the Visa ReadyLink, Interlink and Plus networks. The card can be used everywhere. Its bill payment service also allows customers to make low-cost, in-person payments of non-urgent utility bills for credit to a biller within two to three days. Through its PropertyBridge service, MoneyGram offers a bill payment solution to the property rental industry, including the ability to electronically accept security deposits and rent payments.

Financial Paper Products

The Company’s Financial Paper Products segment provides money orders to consumers through its retail and financial institution agent locations in the United States and Puerto Rico, and provides official check services for financial institutions in the United States. It sells money orders under the MoneyGram brand and on a private label or co-branded basis with certain of its retail and financial institution agents in the United States. During the year ended December 31, 2009, MoneyGram issued approximately 204.7 million money orders through its network of 61,092 agent and financial institution locations in the United States and Puerto Rico. As of December 31, 2009, the Company also provided official check outsourcing services at approximately 14,000 branch locations of more than 1,600 financial institutions.

The Company competes with The Western Union Company.

Business Line
Engaged as a financial services company
Subsidiary
MONEYGRAM FRANCE SA
Advisor
DELOITTE & TOUCHE LLP
IPO date
6/22/2004
US SIC Code
6153
Company Address
Suite 100
1550, Utica Avenue South
City province or state postal code
55416, MINNEAPOLIS, MN
Phone: +1 952 591 3000
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.moneygram.com