MoneyGram 2013 Annual Report Download - page 14

Table of Contents
Available Information
We make our reports on Forms 10-K, 10-Q and 8-
K, Section 16 reports on Forms 3, 4 and 5, and all amendments to those reports, available
electronically free of charge in the Investor Relations section of our website ( www.moneygram.com )
as soon as reasonably practicable after
they are filed with or furnished to the Securities and Exchange Commission, or the SEC. Any materials filed with the SEC may be read and
copied at the SEC’
s Public Reference Room at 100 F Street, NE., Washington DC 20549. Information on the operation of the Public Reference
Room can be found by calling the SEC at 1-800-SEC-
0330. Additionally, the SEC maintains an Internet site that contains reports, proxy and
information statements, and other information regarding issuers that file electronically with the SEC which may be found at www.sec.gov .
Item 1A. RISK FACTORS
Various risks and uncertainties could affect our business. Any of the risks described below or elsewhere in this Annual Report on Form 10-
K or
our other filings with the SEC could have a material impact on our business, financial condition or results of operations.
RISK FACTORS
Risks Related to Our Business and Industry
We face intense competition, and if we are unable to continue to compete effectively, our business, financial condition and results of
operations could be adversely affected.
The markets in which we compete are highly competitive, and we face a variety of competitors across our businesses, in particular our largest
competitor, Western Union. With respect to our money transfer, bill payment and money order businesses, our primary competitor is Western
Union. In addition, new competitors or alliances among established companies may emerge. Further, some of our competitors have larger and
more established consumer bases and substantially greater financial, marketing and other resources than we have. We cannot anticipate every
effect that actions taken by our competitors will have on our business, or the money transfer and bill payment industry in general.
If we fail to price our services appropriately relative to our competitors, consumers may not use our services, which could adversely affect our
business and financial results. For example, transaction volume in certain key corridors where we face intense competition could be adversely
affected by increasing pricing pressures between our money transfer services and those of some of our competitors, which could adversely affect
our financial results. If we reduce prices in order to more effectively compete in these corridors, such reductions could adversely affect our
financial results.
Money transfer, bill payment and money order services compete in a concentrated industry, with a small number of large competitors and a large
number of small, niche competitors. We also compete with banks and niche person-to-
person money transfer service providers. The electronic
bill payment services within our Global Funds Transfer segment compete in a highly fragmented consumer-to-
business payment industry.
Competitors in the electronic payments area include financial institutions, third parties that host financial institution and bill payment services,
third parties that offer payment services directly to consumers and billers offering their own bill payment services.
Our official check business competes primarily with financial institutions that have developed internal processing capabilities or services similar
to ours and do not outsource official check services. Financial institutions could also offer competing official check outsourcing services to our
existing and prospective official check customers.
There can be no assurance that growth in consumer money transfer transactions will continue. In addition, consolidation among payment service
companies has occurred 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 lose key agents, our business with our key agents is reduced, our key agents begin offering money transfer services under their own
brand or engage other money transfer service providers, or we are unable to maintain our Global Funds Transfer agent or biller networks,
our business, financial condition and results of operations could be adversely affected.
Revenue from our money transfer and bill payment services is derived from transactions conducted through our retail agent and biller networks.
Many of our high volume agents are in the check cashing industry. There are risks associated with the check cashing industry that could cause
this agent base to decline. We may not be able to retain all of our current retail agents or billers for other reasons, as the competition for retail
agents and billers is intense. If agents or billers decide to leave our agent network, or if we are unable to add new agents or billers to our
network, our revenue would be adversely affected.
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