STRATEGIC PARTNERS
March 18, 2002
MEMPHIS, Tenn. -- Concord EFS, Inc. (NASDAQ: CEFT), operator of the Star network, has partnered with Travelers Express/MoneyGram to offer person-to-person money transfer services via Star network ATMs.
The new service will allow Star cardholders to initiate "send" transactions at participating ATMs, and will allow recipients to collect the funds via a special Star MoneyGram card at any particpating ATM. The "send" service will be initially available through ATMs that are processed by Concord and eventually available to all 209,000 Star ATMs on an optional basis.
The ATM-to-ATM service is expected to pilot and begin initial rollout in the fall of 2002.
MoneyGram, a money transfer network operating with more than 50,000 agent locations in 150 countries, will provide the transaction services for both the "send" and "receive" transactions at Star ATMs.
With the Star MoneyGram money transfer service, financial institutions that own ATMs will be able to participate in the "receive" transactions without any changes to existing hardware or software. ATMs participating in "send" transaction will require minor software modifications to support the added information required for a secure money transfer transaction.
This concept is protected by Concord patents that cover the use of cards to send and receive money transfers at self-service terminals, such as ATMs.
"With MoneyGram, we gain a partner experienced in money transfers with a broad distribution network and a recognizable, reliable money transfer brand," said Edward A. Labry III, Concord president. "Financial institutions have told us that they want new ways to leverage their ATM investment and to add value to their cardholder services. The STAR MoneyGram money transfer service will be the first person-to-person payment alternative that allows every network member to participate in both the send and receive side of the transaction, creating many new opportunities for revenue."
"This will greatly expand the scope of our global send and receive network and make funds more easily available to people," said Philip W. Milne, president and chief executive officer, Travelers Express/MoneyGram.
The service will allow MoneyGram customers to send money from an agent location that can then be received via an ATM or send funds through a participating Star ATM and have it picked up at an agent location or another Star ATM, Milne added.
"It's a great solution for the many consumers who do not have bank accounts. We believe that our jointly developed technology is the most advanced and consumer-friendly option in the marketplace today," Milne said.
