MoneyGram has entered an agreement to buy Nexxo Financial's kiosk-based money transfer business. MoneyGram will also be the preferred partner for Nexxo money transfers and bill payments.
"By partnering with MoneyGram, well have the support of a trusted money transfer company to provide a more robust solution to retailers and financial institutions," said David Alvarez, Nexxo's co-founder and CEO, in a July 31 press release. "This will enable us to reach more consumers in the future. Its a win-win for both companies."
MoneyGram is buying 200 kiosks across California, Illinois and Texas. The kiosks, which serve 15 Latin American countries, will support worldwide transfers to MoneyGram agents when the sale closes in the fourth quarter.
"By acquiring these assets, we are taking a leap forward in our go-to-market strategy with flexible self-service solutions for our agents and consumers," said Alex Hoffman, MoneyGram's senior vice president for global product management and emerging channels, in a separate release. "These kiosks will provide a convenient way for retailers to effectively offer consumers financial products and maintain focus on their core business."