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MoneyGram International Inc
Industry Financial services
Founded 1940; 77 years ago (1940)
Headquarters Dallas, Texas, U.S.
Key people
Pam Patsley
Alex Holmes
Products Money transfers
Money orders
Official check
Bill payment services

MoneyGram International Inc. is a money transfer company based in the United States with headquarters in Dallas, Texas.[1] It has an operation center in St. Louis Park, Minnesota and regional and local offices around the world. MoneyGram is a public company and listed under the ticker symbol MGI.[2] MoneyGram businesses are divided into two categories: Global Funds Transfers and Financial Paper Products.[3] The company works with individuals and businesses through a network of agents and financial institution customers.

MoneyGram is the second largest provider of money transfers in the world.[4][5][6] The company operates in more than 200 countries with a global network of about 347,000 agent offices.[3]


MoneyGram International was a result of two businesses merging, Minneapolis-based Travelers Express and Denver-based Integrated Payment Systems Inc. MoneyGram was initially established as a subsidiary of Integrated Payment Systems and then became independent company before it was acquired by Travelers in 1998.[7][8] In 2004, Travelers Express became what is known today as MoneyGram International.

Travelers Express (1940–1997)[edit]

Minneapolis-based Travelers Express Co. Inc. was founded in 1940.[4] A subsidiary of Viad Corporation, it became the nation's largest provider of money orders before initiating a company reorganization plan in 1993.[9] By the late 1990s, MoneyGram Payment Systems had served customers at over 22,000 locations in 100 countries.[10][11]

MoneyGram Payment Systems (1988–1997)[edit]

MoneyGram was formed in 1988 as a subsidiary of Integrated Payment Systems Inc.[10][12][13] Integrated Payment Systems was a subsidiary of First Data Corporation, which was itself a subsidiary of American Express.[7] In 1992, First Data was spun off from American Express and publicly traded on the New York Stock Exchange.[7][11] First Data Corporation later merged with First Financial, the owners of rival Western Union.[7] In order to approve the merger, the Federal Trade Commission forced First Data to sell Integrated Payment Systems.[12]

In 1996, Integrated Payment Systems, the nation's second largest non-bank consumer money transfer business, became its own publicly traded company and was renamed MoneyGram Payment Systems Inc.[11][12] In 1997, James F. Calvano, former president of Western Union, became MoneyGram Payment Systems CEO.[10]

MoneyGram International Ltd. was established in 1997 by MoneyGram Payment Systems Inc. a year after the company had gone public.[10] At the time when MoneyGram International was established, MoneyGram Payment Systems owned 51 percent of the company, while the other 49 percent was owned by the Thomas Cook Group.[14][15]

MoneyGram International (1998–present)[edit]

In April 1998, Viad acquired MoneyGram Payment Systems Inc.[8][16] for $287 million.[11] MoneyGram was then folded into Viad's Travelers Express in Minneapolis.[11]

In 2003, Travelers Express gained full ownership of the MoneyGram network, including MoneyGram International.[10] Later that year, Viad spun off Travelers Express as an independent company.[17] In January 2004 and Travelers Express was renamed to MoneyGram International Inc.[17][18] In June 2004, Viad sold MoneyGram and it became a publicly traded, individual entity.

By 2006, MoneyGram International had expanded internationally to include over 96,000 agents in regions such as the Asian-Pacific, Eastern Europe, and Central America.[10] The company had also introduced additional services such as bill payment and online money transfers.

During the financial crisis, MoneyGram's shares fell 96 percent from 2007 to 2009.[19] It lost more than $1.6 billion from investments in securities backed by risky mortgages in 2008, and the losses led the company to sell a majority stake to Thomas H. Lee Partners and Goldman Sachs in exchange for a cash infusion.[20] During the drop, U.S. Bancorp shifted its money transfer services to Western Union.[21] The company began to see profitability again in 2009.[21]

Amid MoneyGram's turnaround, Pamela Patsley became the executive chairman of the company in January 2009 and was later named CEO in September of that year.[22][23] In November 2010, MoneyGram officially relocated its global headquarters to the city of Dallas, Texas.[19][23] The company continues to maintain global operations and information technology centers in Minneapolis, Minnesota.[19]

In 2013 Moneygram began considering a sale. In 2014, Moneygram lost a relationship with Wal-Mart Stores Inc. and afterwards began a restructuring to cut costs. From their peak in 2013 until late 2015, shares fell about 70%.[24] Moneygram closed a Global Customer Care Operations center in Lakewood, CO resulting in over 500 layoffs. Furthermore, MoneyGram closed its 376-person Brooklyn Center operation in 2015.[25] Moneygram has offshored numerous positions to Warsaw, Poland from its Colorado and Minnesota locations for additional cost cutting.[26] In 2015, the company's agent network in Africa reached 25,000 locations, including an agreement with the Mauritius Post Office.[27][28]

Between late October 2016 and January 2017, Moneygram's shares doubled in value.[24] On January 26, 2017 , Ant Financial Services Group. a Chinese firm partially owned by the Chinese government, announced a deal to acquire MoneyGram International for $880 million. Approval still needed to be granted from the Committee on Foreign Investment in the United States.[24]


MoneyGram products

Global Funds Transfers[edit]

Financial Paper Products[edit]

  • Money Orders - MoneyGram is the second largest money order supplier.[5][6][29]
  • Official Checks - MoneyGram offers official check outsourcing services which are available to financial institutions in the United States. Official Checks are used by consumers where a payee requires a check drawn on a bank and by financial institutions to pay their own obligations.

Legal cases[edit]

In November 2012, MoneyGram International admitted to anti-money laundering and wire fraud violations.[30] MoneyGram services were used by unrelated parties involved in mass marketing and consumer phishing scams that defrauded thousands of victims in the United States.[31] As a part of the settlement, MoneyGram created a $100 million victim compensation fund.[32] MoneyGram also retained a corporate monitor who will report regularly to the United States Department of Justice for a five-year trial period. If MoneyGram fulfills its obligations under the settlement, prosecutors will seek dismissal of the charges of aiding and abetting wire fraud.[32] MoneyGram also terminated any agents complicit in the 2009 scams and invested more than $84 million in improvements to the company's consumer anti-fraud systems and consumer awareness education.[31] In February 2015, MoneyGram assisted a local Houston reporter in shutting down a fraud scam after discovering a scheme that utilized an account with the company.[33]

In February 2016, MoneyGram agreed it would pay $13 million to end a probe stemming from customer complaints that scam artists duped them into wiring funds via the money transfer service. The settlement, with attorneys general in 49 states and Washington, D.C., includes $9 million for a nationwide fund that will facilitate the return of money to some MoneyGram customers and $4 million to cover states' costs and fees, according to numerous announcements by state attorneys general.[34]


MoneyGram launched the MoneyGram Foundation in 2013, which focuses on distributing grants internationally to support education.[35] The MoneyGram Foundation distributed grants in 19 countries in its first year of operations.[35] The Foundation gets the bulk of its funding from MoneyGram International, and builds on MoneyGram's previous Global Giving Program.[36]

Through MoneyGram, Global Giving made a donation of $100,000 to World Vision International for education and school supplies, and another donation of $30,000 for the Girls Exploring Math and Science program in Dallas.[31]

MoneyGram participated in relief aid following the 2010 Haiti earthquake by reducing their fees to only $1 for any transactions to Haiti along with a $10,000 grant to Pan American Development Foundation and American Red Cross.[37][38] In 2012, MoneyGram contributed to Hurricane Sandy relief efforts by pledging to donate $1 per transaction up to $200,000 to the American Red Cross.[39]

The foundation has also contributed to other relief efforts following events such as Typhoon Haiyan in the Philippines.[40] The company has also participated in the One Laptop per Child initiative[41] and Habitat for Humanity through the MoneyGram Foundation.[42]

Alternative providers[edit]


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  41. ^ "MoneyGram, OLPC donate 250 tablets to students in SA". Telecompaper. 31 July 2014. Retrieved 11 December 2014. 
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External links[edit]