MoneyGram Payment Systems has partnered with India’s Federal Bank to offer direct-to-account deposits for its customers in India.
Through the partnership, customers will be able to receive deposits directly in their bank accounts without having to leave their homes. This comes as India has been in lockdown since March 24.
Grant Lines, MoneyGram Chief Revenue Officer, said: “Federal Bank is known throughout India as a pioneer in digitising financial services. We’re proud to partner with them, enabling millions of people the option to receive money directly into their bank account.
“This partnership is especially important during this ongoing COVID-19 pandemic so families can receive money from the comfort of their own home.”
Remittances in India
Due to Covid-19, remittances in India are expected to fall by 23% to $64bn, according to the World Bank. This is a stark contrast with a growth of 5.5% and receipts of $83bn seen in 2019.
MoneyGram and the Federal Bank hope to boost business in the sector through their collaboration.
Shalini Warrier, Executive Director of Federal Bank, said: “We are pleased to announce our Rupee remittance tie-up with MoneyGram. Non-Resident Indians can now enjoy a modern, low cost, fast, easy and more reliable way of transferring money to India. At Federal Bank, we believe in “Digital at the fore, human at the core”.
“The tie-up with MoneyGram is another example of how the Bank has used innovative technology to deliver superior customer experience. Being a leading player in the remittance and Non-Resident space, we are confident that this tie-up with MoneyGram will provide huge benefits to customers.”
Earlier this month, MoneyGram International reported its total revenue at $290.9m for the first quarter of 2020, a decline of 8% compared to 2019.
For Q1, the company’s revenue from money transfer was $255.9m and its investment revenue stood $10.1m.