Western Union might be purchasing cross-border payments company MoneyGram.
According to a June 1 article on Bloomberg, the payments giant recently made a takeover offer for MoneyGram. If successful, this would combine the two of the biggest money-transfer companies in the United States.
Ups and downs during pandemic
Lockdowns and shelter-in-place orders in response to the coronavirus have closed many businesses across the U.S., including local branches of MoneyGram.
The number of digital transactions have risen as people stay at home, but they accounted for just 18% of its money transfers in the first quarter, according to Bloomberg. Despite partnering 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, with Western Union valued at roughly $8.2 billion.
