MoneyGram 2010 Annual Report Download - page 6

Table of Contents
Our primary bill payment service offering is our ExpressPayment® service, which we offer at all of our money transfer agent locations in
the United States and at certain agent locations in select Caribbean countries. Through our ExpressPayment service, a consumer can pay
cash for bills at an agent location and obtain same-day notification of payment to the consumer's account with its creditor (a "biller"). Our
consumers can also use our ExpressPayment service to load and reload prepaid debit cards. Our ExpressPayment bill payment service is
also available for payments to select billers via the Internet at www.moneygram.com.
We also derive revenue through our money order and official check services. We provide money orders through retail and financial
institutions located throughout the United States and Puerto Rico, and we provide official check outsourcing services to financial
institutions across the United States. Consumers use our money orders to make bill payments or in lieu of cash or personal checks.
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.
During 2010, 2009 and 2008, our 10 largest agents accounted for 50 percent, 48 percent and 44 percent, respectively, of our total
company fee and investment revenue and 54 percent, 53 percent and 53 percent, respectively, of the fee and investment revenue of our
Global Funds Transfer segment. Walmart Stores, Inc. is our only agent that accounts for more than 10 percent of our total company fee
and investment revenue. In 2010, 2009 and 2008, Walmart accounted for 30 percent, 29 percent and 26 percent, respectively, of our total
company fee and investment revenue, and 32 percent, 32 percent and 31 percent, respectively, of the fee and investment revenue of our
Global Funds Transfer segment. Our contract with Walmart in the United States, which runs through January 2013, provides for
Walmart's sale of our money order and money transfer services and real-time, urgent bill payment services at its retail locations on an
exclusive basis.
Our Segments
We manage our business primarily through two segments: Global Funds Transfer and Financial Paper Products. The table below presents
the components of our consolidated revenue associated with our segments for the year ended December 31:
2010 2009 2008
Global Funds Transfer
Money transfer 79.4% 76.7% 68.8%
Bill payment 10.8% 11.6% 11.1%
Financial Paper Products
Money order 5.9% 6.4% 6.8%
Official check 3.5% 4.1% 12.0%
Other 0.4% 1.2% 1.3%
Total revenue 100.0% 100.0% 100.0%
Additional financial information about our segments and geographic areas appears in Note 16, "Segment Information," of the Notes to
Consolidated Financial Statements.
Global Funds Transfer Segment
The Global Funds Transfer segment is our primary segment, providing money transfer and bill payment services to consumers, who are
often unbanked or underbanked. Unbanked consumers are those consumers who do not have a traditional relationship with a financial
institution. Underbanked consumers are consumers who, while they may have a savings account with a financial institution, do not have a
checking account. Other consumers who use our services are convenience users and emergency users who may have a checking account
with a financial institution but prefer to use our services on the basis of convenience or to make emergency payments. We primarily offer
services to consumers through third-party agents, including retail chains, independent retailers and financial institutions.
3