MoneyGram, the second largest global remittance provider, revised its revenue goals downward for the year but is hoping a revamped digital strategy will accelerate growth. Digital revenue while up 17% YoY, still only comprises 13% of MGram's total revenue. Digital has become a key acquisition tool for the firm. Moneygram.com attracted over 214,000 new customers for the firm in Q2, indicating that the firm's website is a key draw for new users. Digital transaction growth remains high, despite moderation. The firm’s overall number of digital transactions grew by 9% year-over-year (YoY) in Q2.
The top 5 fintech predictions for 2016 This story was delivered to BI Intelligence "Payments Briefing" subscribers. To learn more and subscribe, please click here. MoneyGram, the second-largest global remittance provider, posted gains in its largest segments in Q2 2016. But despite bottom-line growth, geopolitical and economic instability across the globe impacted the firm’s overall success and caused it to revise its revenue goals downward for the year. That means that, in the coming quarters, MoneyGram will focus on doubling down on efforts to satisfy customers and differentiate its brand, according to CEO Alex Holmes. Digital, which remains a valuable growth driver, could be a key component of that strategy.