University of Turbat Money & Banking

Submitted To: Sir Atta ur Rehman

Submitted By: Abdullah Karim

Class: B.com 2nd

Department: Commerce

Assignment No: 2

Topic: MoneyGram

Date: 24 Sept 2014

MoneyGram International Inc.

MoneyGram International Inc. is a money transfer company based in the United States with its headquarters in Dallas, Texas. It has operation centers in St. Louis Park, Minnesota and Brooklyn Center, Minnesota, a call center in Lakewood, Colorado, and regional and local offices around the world. MoneyGram businesses are divided into two categories, consisting of Global Funds Transfers and Financial Paper Products. The company services individuals and businesses through a network of agents and financial institution customers. Following the foiling of a $100-million scam ring, MoneyGram was at the center of the largest administrative forfeiture in the 200-plus-year history of the United States Postal Inspection Service.

History

MoneyGram International is a result of two businesses merging. One company, Minneapolis-based Travelers Express Co. Inc. was founded in 1940 and became the world’s largest processor of money orders and a major player in the electronic payments industry. The other company that helped create MoneyGram International was Denver-based Integrated Payment Systems Inc., which entered the international money transfer business in 1988. Travelers Express and MoneyGram Payment Systems joined forces in 1998 when Travelers Express’ parent, Viad, purchased MoneyGram Payment Systems. In 2004 Viad spun off the Travelers/MoneyGram group into a new publicly traded company - MoneyGram International Inc.

From 2007-2009, MoneyGram's shares fell 96 percent. It lost more than $1.6 billion from investments in securities backed by risky mortgages in 2008; the losses led the company to sell a majority stake to Thomas H. Lee Partners and Goldman Sachs in exchange for a cash infusion. During the drop, U.S. Bancorp shifted its money transfer services to Western Union. The company began to see profitability again in 2009.

In September 2010, MoneyGram announced that it will move its global headquarters to the city of Dallas, Texas, although Minneapolis, Minnesota will continue to be the hub for its Global Operations and Information Technology Centers of Excellence, and Lakewood, Colorado will continue to host its Call Center Operations. The company officially moved its headquarters as of Nov. 1, 2010.

Consumer products

MoneyGram provides essential services to consumers who are not fully served by traditional financial institutions. MoneyGram offers worldwide money transfer services in more than 200 countries and territories through a global network of 345,000 agent locations, including retailers, international post offices and banks. Learn more about MoneyGram consumer products.

Business solutions

MoneyGram also offers bill payment services, issues money orders and processes official checks in select markets. In a world where business demands are increasingly global, MoneyGram can help. As a high-performance payment and financial services company MoneyGram is trusted by businesses, financial institutions and agents around the world. Learn more about MoneyGram banking solutions and biller solutions.

Products

Global Funds Transfers MoneyGram Money Transfer MoneyGram Bill Payments Services - allowing consumers to make urgent payments or

pay routine bills to certain creditors.

PropertyBridge (RentPayment) a service to allow property owners to accept payments from their tenants.

Financial Paper Products Money Orders - MoneyGram is the second largest money order supplier. Official Checks

- MoneyGram offers official check outsourcing services which are available to financial institutions in the United States. Official Checks are used by consumers where a payee requires a check drawn on a bank and by financial institutions to pay their own obligations.