“…to date MoneyGram has refused to open a meaningful dialogue with us, leaving us no choice but to make this proposal public…”

Euronet CEO’s letter to employees, December 13, 2007

In the past, MoneyGram and Western Union were often called the “monopolies” of cross-border money transfers. However, MoneyGram’s valuation was significantly smaller than Western Union’s and had a multiple below that of any competitor.

MoneyGram’s valuation had been erratic since its IPO in 2004, even reaching near-zero levels in 2019 and 2020, until it was finally acquired by a private equity firm, Madison Dearborn Partners, in 2023:

Throughout its history, MoneyGram has stood out as the most irrational player in remittances, defying the stereotype that incumbent financial services companies are too conservative. The only explanation for such behavior could be the curse of an eternal “silver medal.”

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What is the difference between Xoom and Wise’s models? Do startups like Remitly or WorldRemit have a chance to gain a winning market share? What are the different ways money transfer providers mislead consumers? Why has MoneyGram’s valuation been much lower than that of other players? Will Bitcoin/blockchain destroy Western Union? Why do some nationalities use cash agents while others prefer online? Is the banks‘ remittance business really being disrupted? What are the differences in operating models across x-border money transfer businesses?…

If these and other such questions interest you, you have come to the right place. Thank you for visiting our blog! First, let’s clarify who this blog is for, why we started it, and what to expect.

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