MoneyGram has inked a deal with Millicom, the parent company of Tigo Money, to launch mobile cash receive services into more than one million Tigo Money mobile wallets in El Salvador.

The new service will allow Tigo Money users to pay bills, transfer money between people and businesses, use self-top ups, and make merchant payments.

MoneyGram executive vice president of global product Alex Hoffmann said: "We’re excited about the opportunity to expand our reach to mobile money accounts in Central America through the partnership with Tigo Money.

"Remittances are an important part of economic development and financial inclusion in the region, and we are thrilled to offer our customers an easy and convenient way to receive funds they depend on from family and friends around the globe."

Millicom director of mobile financial services Ronald Alvarenga said: "Millicom and MoneyGram have a shared goal to increase financial inclusion for those who may not be able to easily utilise traditional bank accounts through innovative, easy and secure mobile financial services which are available in the palm of your hand."

MoneyGram said that the new agreement includes all of Tigo’s markets in Central and South America, and soon it expects to launch services in other nations such as Honduras, Guatemala, Bolivia, Colombia and Paraguay.