MoneyGram International, Inc., a global leader in cross-border P2P payments and money transfers, today announced the results of a customer survey that provides notable insights into how consumers are sending money over the holidays this year.
Based on the results of a recent survey of nearly 1,500 United States-based customers who have sent money abroad using MoneyGram this year, the Company found strong consumer sentiment toward remittances going into the 2020 holiday season.
Despite hardships caused by the COVID-19 pandemic, such as job loss and increases in living and healthcare expenses, the survey revealed that nearly 70% of respondents have sent more money in 2020 and that the majority of respondents plan to send at least as much this holiday season as they did last year.
Of those surveyed, 80% of consumers also reported that the pandemic has led to an increase in the needs of family and friends abroad this year. Expenses for food topped the list with 70% of respondents reporting that those abroad have needed more money to feed their families this year. This was followed by expenses for housing (55%) and healthcare (52%).
The survey also provided insights into the acceleration of digital adoption at MoneyGram and across the industry. Nearly 60% of respondents said that as a result of the pandemic they are evolving the way they send money and increasingly utilizing digital tools to send money abroad.
Consumers also reported that the pandemic has led to an increase in family and friends requesting to receive money digitally, such as directly into a bank account or mobile wallet instead of cash.
“These survey results highlight the resilience of our customers, their capacity to navigate through difficult times and their dedication to family and friends around the world.” said Alex Holmes, MoneyGram Chairman and Chief Executive Officer.
“The results of the survey correspond to the strong performance we have reported this year and support our ongoing strategy to deliver a differentiated customer experience and accelerate digital growth across the world. I’m excited that our consumer-centric digital transformation and continued agile management of the business has enabled us to uniquely serve our customers as their needs quickly changed this year.”
Additional key insights from MoneyGram’s customer survey included:
|• Besides increased needs of family and friends abroad, the following factor also impacted consumers’ decisions and ability to send money this year:|
|ο Change in income (34%)|
|ο Unexpected expenses such as healthcare costs (28%)|
|• Looking ahead to next year, 78% of respondents plan to send at least as much money in 2021 as they did this year.|
“As we head into a holiday season that looks different than ever before, we are extremely thankful for our incredible customer base that has remained strong and loyal amidst the economic crisis induced by the pandemic,” said Kamila Chytil, MoneyGram Chief Operating Officer and leader of the Company’s digital business.
“We’re also encouraged by the number of customers who report switching to MoneyGram due to the ease of use of our mobile app, the affordability of our service, and our expansive digitally-enabled network across 81 countries. We’re thrilled that we can be the best option to help them support their family and friends during this challenging season.”
MoneyGram recently reported its eleventh consecutive month of triple-digit year-over-year cross-border transaction growth in its direct-to-consumer digital channel in November with 135% year-over-year revenue growth for the month.