MoneyGram has been severely wounded by Transferwise and WorldRemit as the architecture of the remittance sector continues to evolve. Things are so bad that Ripple is injecting $50 million for a 15% stake. That money will help MoneyGram modernize by running digital token XRP.
Yet, I do not see how that would help in the long-run. If not for antitrust issues, Western Union can just buy MoneyGram since the U.S. government blocked Alibaba’s Ant Group from buying it. The Chinese wanted to pay $1.2 billion but it was blocked; today, MoneyGram is worth about $364 million.
WorldRemit is worth about $1.5 billion while Transferwise goes for $5.5 billion as Nigeria’s Interswitch remains rumored at $1 billion. Now, from all indications, this game is changing and I do think MoneyGram will not be here for long. The question is this: does Interswitch have a playbook to use MoneyGram to make Verve a popular brand like Amex, Visa and Mastercard around the world?
How would it sound that Interswitch has bought MoneyGram, and integrates its remittance services into Verve? Yes, MoneyGram becomes a distribution channel for Verve.
*privately held companies---
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