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Nowadays, registering an e-business is becoming increasingly popular. Digital technologies have filled the world space, and we will not be mistaken if we call our society digital. And the COVID-19 pandemic, which suddenly burst into our lives, accelerated the process of consumers' transition to online, literally forcing many to choose electronic forms of payment, even if they previously preferred traditional forms. The world's leading jurisdictions provide all the conditions for registering an international e-commerce company that interacts with consumers and partners online.

Digitalization has not spared the sector of money transfers, which, in particular, are offered by the largest and oldest players in this market, Western Union and MoneyGram. The emergence of Fintech with the help of which it has become possible to offer P2P remittance and international payments capabilities, has put both companies under pressure of upgrading. In this regard, Western Union is rumored to be trying to acquire the competitor. As a result, a deal to merge large international money transfer companies is planned .

By the way, if you are interested in registering an international P2P platform, please contact our specialists for qualified advice.

Is the deal to merge international money transfer companies profitable?

After confidential sources revealed that Western Union is negotiating a deal to acquire MoneyGram, the shares of both companies have risen significantly, as investors are interested in the potential deal. Starting a deal to acquire a large money transfer company, in this case MoneyGram, is also beneficial in terms of eliminating competition. In addition, due to the global pandemic, such a merger will strengthen the position of both companies in the market.

"Western Union will be able to consolidate the volume of MoneyGram on its platform," company representatives said. This will increase efficiency in order to better compete with large fintech companies.

Expand your digital presence

Since one of the best ways to improve its market position and attract new customers is through M&A deals of international companies, late last year Western Union teamed up with Amazon to provide long-term cloud services.

Both companies are expanding their digital presence, providing the flexibility to transform online. 

Western Union also partnered with Visa to expedite payment processing for mobile transactions. If you need advice on preparing for certification for Visa, please contact IQ Decision UK specialists by filling out the application form below.

Last year, MoneyGram gained access to Ripple, a company that supports cross-border payments with banks and Fintech. This helps to reduce the time and cost of payments, since the need to involve third parties, such as correspondent banks, is eliminated by itself.

All of these steps towards automation are crucial to move more businesses to digital channels and decrease dependence on agent locations.

Unfortunately, despite partnering with Ripple for cross-border payments in foreign exchanges, MoneyGram reported a "quiet" first quarter in 2020. MoneyGram has a market capitalization of around $ 155 million and Western Union is valued at around $ 8.2 billion. So, hopefully, the acquisition transaction will be useful for both giants.

Finally

If you intend to set up an international company for payment services, our experts will advise on the regulation of international money transfers in your chosen jurisdiction.