MoneyGram 2015 Annual Report Download - page 14

Table of Contents
Available Information
Our website address is corporate.moneygram.com . The information on our website is not part of this Annual Report on Form 10-K. 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 ( ir.moneygram.com ) as soon as reasonably practicable after they are filed with or furnished to the Securities and Exchange
Commission (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, prospects, 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, some of which have larger and more
established customer bases and substantially greater financial, marketing and other resources than we have. 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. Our money transfer products
compete with a variety of financial and non-financial companies, including banks, card associations, web-based services, payment processors, informal remittance
systems, consumer money transfer companies and others. The services are differentiated by features and functionalities, including brand recognition, customer
service, reliability, distribution network and options, price, speed and convenience. Distribution channels such as online, account based and mobile solutions
continue to evolve and impact the competitive environment for money transfers. The electronic bill payment services within our Global Funds Transfer segment
compete in a highly fragmented consumer-to-business payment industry. 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.
Our future growth depends on our ability to compete effectively in money transfers, bill payment and money order services. For example, if our products and
services do not offer competitive features and functionalities, we may lose customers to our competitors, which could adversely affect our business and financial
results. In addition, 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. We have historically implemented and will likely continue to implement price adjustments from time to time in response to
competition and other factors. For example, transaction volume 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 reduce margins and adversely affect our financial results. If we reduce
prices in order to more effectively compete, such reductions could adversely affect our financial results in the short term and may also adversely affect our
financial results in the long term if transaction volumes do not increase sufficiently.
If we lose key agents, our business with key agents is reduced or we are unable to maintain our agent network under terms consistent with those currently in
place, our business, financial condition and results of operations could be adversely affected.
Most of our revenue is earned through our retail agent network. In addition, our international agents may have subagent relationships in which we are not directly
involved. If agents or their subagents decide to leave our network, our revenue and profits could be adversely affected. Agent loss may occur for a number of
reasons, including competition from other money transfer providers, an agent’s dissatisfaction with its relationship with us or the revenue earned from the
relationship, or an agent’s unwillingness or inability to comply with our standards or legal requirements, including those related to compliance with anti-money
laundering regulations, anti-fraud measures or agent monitoring. Agents may also generate fewer transactions or reduce locations for reasons unrelated to our
relationship with them, including increased competition in their business, general economic conditions, regulatory costs or other reasons. In addition, we may not
be able to maintain our agent network under terms consistent with those already in place. Larger agents may demand additional financial concessions or may not
agree to enter into exclusive arrangements, which could increase competitive pressure. The inability to maintain our agent contracts on terms consistent with those
already in place, including in respect of exclusivity rights, could adversely affect our business, financial condition and results of operations.
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