MoneyGram 2011 Annual Report Download - page 22

Table of Contents
and could continue to occur in the future. If we are unable to continue to grow our existing products, while also growing newly developed and acquired
products, we will be unable to compete effectively in the changing marketplace, and our business, financial condition and results of operations could be
adversely affected.
If we fail to successfully develop and timely introduce new and enhanced products and services or if we make substantial investments in an unsuccessful
new product, service or infrastructure change, our business, prospects, financial condition and results of operations could be adversely affected.
Our future growth will depend, in part, on our ability to continue to develop and successfully introduce new and enhanced methods of providing money
transfer, money order, official check, bill payment and related services that keep pace with competitive introductions, technological changes and the
demands and preferences of our agents, financial institution customers and consumers. If alternative payment mechanisms become widely substituted for
our current products and services, and we do not develop and offer similar alternative payment mechanisms successfully and on a timely basis, our business
and prospects could be adversely affected. We may make future investments or enter into strategic alliances to develop new technologies and services or to
implement infrastructure changes to further our strategic objectives, strengthen our existing businesses and remain competitive. Such investments and
strategic alliances, however, are inherently risky and we cannot guarantee that such investments or strategic alliances will be successful. If such investments
and strategic alliances are not successful, they could have a material adverse effect on our business, financial condition and results of operations.
There are a number of risks associated with our international sales and operations that could adversely affect our business.
We provide money transfer services between and among approximately 190 countries and territories and continue to expand in various international
markets. Our ability to grow in international markets and our future results could be harmed by a number of factors, including:
• changes in political and economic conditions and potential instability in certain regions, including in particular the recent civil unrest, terrorism and
political turmoil in North Africa, the Middle East and other regions;
• restrictions on money transfers to, from and between certain countries;
• money control and repatriation issues;
• changes in regulatory requirements or in foreign policy, including the adoption of domestic or foreign laws, regulations and interpretations
detrimental to our business;
• possible increased costs and additional regulatory burdens imposed on our business;
• the implementation of U.S. sanctions, resulting in bank closures in certain countries and the ultimate freezing of our assets;
• burdens of complying with a wide variety of laws and regulations;
• possible fraud or theft losses, and lack of compliance by international representatives in foreign legal jurisdictions where collection and legal
enforcement may be difficult or costly;
• reduced protection of our intellectual property rights;
• unfavorable tax rules or trade barriers;
• inability to secure, train or monitor international agents; and
• failure to successfully manage our exposure to foreign currency exchange rates, in particular with respect to the euro.
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