Remittance companies prepare to take the next step. MoneyGram currently eyes India as a crucial market for its services.
To strengthen local ties, the company names EbixCash as its exclusive partner in India. A remarkable decision that sends a clear message to competitors.
EbixCash is a Viable Partner
Tackling the remittance industry in India is no easy feat. The country is one of the biggest money transfer markets in the world. Several companies have tried to make a name for themselves in this country over the years.
One of the companies trying to gain a bigger foothold is MoneyGram. The well-known “competitor” to Western Union and Transferwise is exploring numerous options. Its ongoing partnership with Ripple can provide faster and cheaper money transfer options.
Partnering EbixCash is another big step. This subsidiary of Ebix Inc will provide access to customers in over 4,000 cities and 75,000 villages. Targeting the more rural customer base has been difficult for companies not native to the region.
For EbixCash customers in these regions, they can now access MoneyGram’s platform. This includes receiving money from family and friends with ease.
The EbixCash platform spans many different use cases. Those include FX services, mobile recharges, bill payments, travel management, health services, and money transfers. That latter aspect will now be streamlined significantly.
A Bold Vision by MoneyGram
Appointing EbixCash as its exclusive partner in India is a gamble by MoneyGram. It makes sense from a business point of view. Having the ability to tap into brand new markets is crucial for any service provider.
Numbers-wise, this partnership is expected to service $3 billion in annual volume. It will give MoneyGram an option to target sending markets outside of India as well. Leveraging the networks of both participants can have major consequences when done correctly.
MoneyGram CEO and Chairman Alex Holmes adds:
“MoneyGram is focusing on diversification by investing in both its digital business and in key international markets such as India. Partnering with the largest financial exchange in the country is an important milestone, and we are excited to enable EbixCash to plug into the MoneyGram platform to access our customer-centric capabilities and services.”
This collaboration has the potential to transforn the Indian remittance industry as a whole. Tackling the top recipient of remittances and transforming the landscape will prove crucial. The interests of both companies appear to align rather perfectly.