MoneyGram 2015 Annual Report Download - page 7

Table of Contents
We offer a variety of services to provide the best consumer experience possible at our agent locations. We offer full-service and transaction-staging kiosks at select
agent locations around the world. Through our FormFree service, consumers are directed via phone to one of our customer care centers where a representative
collects transaction information and enters 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.com service in the U.S., United Kingdom and Germany and through affiliate websites.
Through moneygram.com, 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, in certain cases, funding with a U.S. checking account. Money transfer transactions through moneygram.com
grew 17 percent and revenue grew 8 percent in 2015 over the prior year.
We offer our money transfer services via virtual agents allowing our consumers to send international transfers conveniently from a website or their mobile phone in
over 10 countries. We continue to expand our money transfer services to consumers through the addition of full-service and transaction-staging kiosks, ATMs,
prepaid cards and direct-to-bank account products in various markets around the world.
As of December 31, 2015 , our money transfer agent network had over 350,000 locations, with growth of 3 percent compared to 2014 . Our agent network includes
agents such as international post offices, formal and alternative financial institutions as well as large and small retailers. Additionally, we have Company-operated
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, including 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. This may
include contributing financial resources to, or otherwise supporting, our efforts to market MoneyGram's services.
BillPaymentServices—We earn our bill payment revenues primarily from fees charged to consumers for each transaction completed. Our primary bill payment
service offering is our ExpressPayment service, which we offer at substantially all of our money transfer agent and Company-operated locations in the U.S.,
Canada and Puerto Rico, at certain agent locations in select Caribbean and European countries and through our Digital/Self-Service solutions.
Through our bill payment services, consumers can complete urgent bill payments, pay routine bills, or load and reload prepaid debit cards with cash at an agent
location, company-operated locations or through moneygram.com 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 400 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.
Marketing—We have global marketing and product management teams located in multiple geographical regions. We employ a strategy of developing products
and marketing campaigns that are global, yet can be tailored to address our consumer base and local needs. A key component of our marketing efforts is our global
branding. We use a marketing mix to support our brand, which includes traditional, digital and social media, point-of-sale materials, signage at our agent locations,
targeted marketing campaigns, seasonal campaigns and sponsorships.
Sales—Our sales teams are organized by geographic area, product and delivery channel. We have dedicated teams that focus on developing our agent and biller
networks to enhance the reach of our money transfer and bill payment products. Our agent requirements vary depending upon the type of outlet, location and
compliance and regulatory requirements. Our sales teams and strategic partnership teams continue to improve our agent relationships and overall network strength
with a goal of providing the optimal agent and consumer experience.
Competition—The market for money transfer and bill payment services continues to be very competitive and the World Bank estimates that in 2016 cross-border
remittances will exceed $600 billion. We generally compete for money transfer agents on the basis of value, service, quality, technical and operational differences,
price, commission and marketing efforts. We compete for money transfer consumers on the basis of trust, convenience, availability of outlets, price, technology
and brand recognition.
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