Market Overview

What Will Alibaba Do With MoneyGram?

What Will Alibaba Do With MoneyGram?

Moneygram International Inc (NASDAQ: MGI) shares are up 9.0 percent on Thursday after Alibaba Group Holding Ltd (NYSE: BABA) payment affiliate Ant Financial agreed to purchase MoneyGram for $880 million. The merger is the latest step in Alibaba’s international expansion efforts. According to MoneyGram’s press release, the merger will connect MoneyGram’s 2.4 billion bank and mobile accounts with Ant Financial’s 630 million users, including 450 million Alipay users and 180 million Paytm users.

“The acquisition of MoneyGram is a significant milestone in our mission to bring inclusive financial services to users around the world,” Ant Financial CEO Eric Jing said of the deal.

Other Names In The Space

Alibaba is certainly not the only big-name tech stock making a big move into the mobile payment and electronic payment transfer space. After building a dominant market share, eBay Inc (NASDAQ: EBAY) spun off Paypal Holdings Inc (NASDAQ: PYPL) into its own entity in 2015. Both Apple Inc. (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) have ventured out of their comfort zones with mobile payment platforms Apple Pay and Google Wallet. Even Facebook Inc (NASDAQ: FB) has its own money transfer service integrated into its Messenger platform.


The timing of the MoneyGram acquisitions may be tied to Jack Ma’s recent pledge to President Donald Trump that he is committed to creating American jobs. Jing specifically addressed American job creation in the press release.

“We are committed to continuing to invest in MoneyGram’s workforce and growing jobs in the United States,” Jing noted.

Trump has threatened to impose a 45 percent tariff on Chinese imports, but he praised Ma for Alibaba's commitment to creating U.S. jobs.

Image Credit: By Raysonho @ Open Grid Scheduler / Grid Engine (Own work) [CC0], via Wikimedia Commons

Posted-In: AliPayFintech M&A News Emerging Markets Markets Movers Tech Best of Benzinga


Related Articles (AAPL + BABA)

View Comments and Join the Discussion!