Western Union might be purchasing cross-border payments company MoneyGram. On June 1 Bloomberg reported that Western Union recently made a takeover offer for MoneyGram.
If successful, this would combine two of the biggest money-transfer companies in the United States.
Western Union is seeking to acquire rival money transfer company MoneyGram https://t.co/Oj7c76q0yK — Bloomberg (@business) June 2, 2020
Lockdowns in response to the coronavirus have closed many businesses across the U.S., including even local branches of MoneyGram.
According to Bloomberg, the number of digital transactions have risen as people are at home, but they accounted for just 18% of its money transfers in the first quarter,
However, despite its partnership with Ripple in 2019 for cross-border payments foreign exchange settlements, MoneyGram reported a “quiet” first quarter for 2020.
MoneyGram has a market cap of approximately $155 million, while Western Union is valued at roughly $8.2 billion.
Source: Cointelegraph | Image: Unsplash