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MoneyGram expanded its presence in the United Arab Emirates (UAE) by partnering with Digital Financial Services (DFS). The deal will enable DFS customers to make cross-border transactions to friends and relatives in more than 200 countries instantly.
MoneyGram and DFS sign a deal
Millions of foreigners work in the UAE. These people work in various industries, including finance, oil and gas, and hospitality. As a result, the region plays an important role in foreign financial transactions. According to the UAE Central Bank, expats sent more than $22.04 billion in the first half of 2019, making it the third outward remittance country in the world after the US and Europe.
MoneyGram is seeking to capture part of this market, which has long been dominated by Western Union and other local firms. In an announcement yesterday, the firm said it was starting a partnership with DFS, a partnership between Etisalat and Dubai Islamic Bank. The firm owns an eWallet product that helps people send and receive money in the UAE. The app does not require customers to have a bank account or credit and debit cards.
In a statement, Grant Lines, the Chief Revenue Officer of MoneyGram said:
“We’re excited about how this partnership builds upon our strong momentum in the Middle East market. It accelerates digital growth as we expand our customer-centric capabilities to the third-largest outbound remittance country in the world.”
Ahmed Al Awadi, the CEO of DFS, said:
“Our partnership with MoneyGram will further enrich our customers’ lives with a state-of-the-art user experience which MoneyGram is renowned for. It will also boost our future expansion plans.”
Money transfer partnerships rising
The coronavirus pandemic has led to a rise in partnerships in the money transfer industry. A few weeks ago, we reported of a new agreement between MoneyGram and Uber. The deal allows drivers in the United States to send money around the world for free. We also reported of a potential merger between Western Union and MoneyGram.
Analysts expect these transactions to continue as the remittance industry goes through its toughest year in decades. According to the World Bank, remittances will fall by 20% this year as the unemployment rate in key outflow companies rise
Also, these deals will help traditional firms expand their relevance at a time when digital firms are seeing better growth internationally.
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