MoneyGram 2013 Annual Report Download - page 8

Table of Contents
The majority of our remittances constitute transactions in which cash is collected by one of our agents and payment is available for pick-
up at
another agent location. Typically, the designated recipient may receive the transferred funds within 10 minutes at any MoneyGram agent
location. In select countries, the designated recipient may also receive the transferred funds via a deposit to the recipient’
s bank account, mobile
phone account or prepaid card. Through our online product offerings, consumers can remit funds from a bank account, credit card or debit card.
We offer a variety of services to improve the consumers' experience at our agent locations. Through our FormFree service, consumers are
directed to one of our customer care centers and a representative collects transaction information over the telephone, entering it directly into our
central data processing system. Our MoneyGram xpress
product enables consumers to pay for money transfers at a MoneyGram agent location,
and provide the information necessary to complete the money transfer when and where it is convenient for them, via phone or any internet-
enabled device.
We offer our money transfer services on the internet via our MoneyGram Online service in the U.S., United Kingdom, Germany and through
affiliate websites. Through our MoneyGram Online service, consumers have the ability to send money from the convenience of their home or
internet-
enabled mobile device to any of our agent locations worldwide through a debit or credit card or three day service funding with a U.S.
checking account. MoneyGram Online money transfer transactions grew 44 percent and revenue grew 22 percent in 2013 over the prior year.
In over 10 countries, we offer our money transfer services via virtual agents allowing our consumers to send international transfers conveniently
from their mobile phone. We continue to expand our money transfer services to consumers through the addition of full service and staging
kiosks, ATMs, prepaid cards and direct-to-bank account products in various markets around the world.
In 2013 , we added approximately 26,000 net locations, bringing our global money transfer agent network to approximately 336,000
locations.
The following table is a summary of our approximate money transfer agent locations by geographic area as of December 31 :
Our agents include large networks such as international post offices, financial institutions and retailers as well as a large number of agents
specializing in specific corridors. Additionally, we have Company-
owned retail locations in the U.S. and Western Europe. Some of our agents
outside the U.S. manage sub-agents. We refer to these agents as super-agents. Although these sub-agents are under contract with these super-
agents, the sub-
agent locations typically have access to similar technology and services as our other agent locations. Many of our agents have
multiple locations, a large number of which operate in locations that are open outside of traditional banking hours, for example on nights and
weekends. Our agents know the markets they serve and they work with our sales and marketing teams to develop business plans for their
markets, which may include contributing financial resources to, or otherwise supporting, our efforts to market the business.
Bill Payment Services
—
We derive our bill payment revenues primarily from transaction fees charged to consumers for each transaction
completed. Our primary bill payment service offered is our ExpressPayment service, which we offer at substantially all of our money transfer
agent and company-owned locations in the U.S., Canada and Puerto Rico, and at certain agent locations in select Caribbean countries.
Through our bill payment services, consumers can complete urgent bill payments, pay routine bills, or load and reload prepaid debit cards in
cash at an agent location or through MoneyGram Online with a credit or debit card. We offer consumers same-
day and two or three day payment
service options; the service option is dependent upon our agreement with the biller. We offer over 13,000
payment options to billers in key
industries, including the ability to allow the consumer to load or reload funds to nearly 300
prepaid debit card programs. These industries include
the credit card, mortgage, auto finance, telecommunications, corrections, health care, utilities, property management, prepaid card and
collections industries.
6
2013
2012 2013 vs 2012 2013 vs 2012
(growth) (%)
Latin America, excluding Mexico
22,000
20,000
2,000
10
%
Mexico
16,000
15,000
1,000
7
%
U.S. and Canada
55,000
53,000
2,000
4
%
Western Europe
49,000
50,000
(1,000
)
(2
)%
Eastern Europe
64,000
52,000
12,000
23
%
Indian subcontinent
60,000
55,000
5,000
9
%
Asia Pacific
41,000
38,000
3,000
8
%
Africa
23,000
22,000
1,000
5
%
Middle East
6,000
5,000
1,000
20
%
Total agent locations
336,000
310,000
26,000
8
%