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MoneyGram acquisition of Nexxo kiosks expands financial services

July 31, 2013

MoneyGram has agreed to acquire the money transfer kiosk business of Nexxo Financial — a deal that solidifies MoneyGram's position as the preferred money transfer and bill-payment partner for Nexxo, according to an announcement from the companies.

MoneyGram, a globally-operating money transfer company, will obtain 200 Nexxo Financial kiosks located primarily in California, Illinois and Texas. Upon closing, the kiosks will offer automated, self-service money transfers to MoneyGram agents worldwide. Consumers will also be able to pay bills utilizing MoneyGram's extensive bill-payment network, the announcement said.

"Consumers want fast, convenient ways to transfer money," said MoneyGram chairman and CEO Pam Patsley. "These low maintenance self-service kiosks are a great way for retailers and financial institutions to provide one-stop-shop money transfer services to their customers."

The move to expand MoneyGram's use of self-service channels is a strategy that the company said is in line with recent statistics. The FDIC has estimated that 60 million U.S. residents do not use formal banking channels as the primary method for their day-to-day financial services, pointing toward a growing need for convenient and affordable means to transfer funds, the company said in the release.

"This transaction is consistent with our mission to provide a turnkey option for consumers to handle all of their financial needs through a fast and reliable platform," said David Alvarez, Nexxo co-founder and CEO. "By partnering with MoneyGram, we'll have the support of a trusted money transfer company to provide a more robust solution to retailers and financial institutions. This will enable us to reach more consumers in the future. It's a win-win for both companies."

Read more about bill-payment kiosks.