Alibaba affiliate buys MoneyGram

A new acquisition by Alibaba positions the company to accelerate the accessibility of global financial services.



Ant Financial Services Group, Alibaba’s e-payment arm and the parent company of Alipay, is purchasing money transfer firm MoneyGram for approximately $880 million, according to Business Insider.



Reuters also reported that Ant Financial said it would assume or refinance MoneyGram's outstanding debt, which comprised $937.3 million on a net basis as of Sept. 30, according to a regulatory filing.



The transaction will connect MoneyGram's money transfer network of 2.4 billion bank, mobile accounts and 350,000 physical locations with Ant Financial's users. The combination will provide consumers in over 200 countries and territories with more convenient and accessible financial services — a move that furthers Ant Financial's mission to promote equal access to financial services globally, according to MoneyGram.



MoneyGram, which will remain headquartered in Dallas and continue to operate under its existing brand, will be able to leverage Ant Financial's global presence and existing network to serve more than 630 million users -- including 450 million with Alipay and 180 million with India's leading mobile payment provider Paytm. This configuration increases MoneyGram's transaction volume across the broad Asia-Pacific region.



The transaction will also help expand Ant Financial's business in new global markets, similar to its recent partnerships with Paytm in India and Ascend Money in Thailand.



“We believe financial services should be simple, low-cost and accessible to the many, not the few,” said Eric Jing, CEO of Ant Financial. “The combination of Ant Financial and MoneyGram will provide greater access, security and simplicity for people around the world to remit funds, especially in major economies such as the United States, China, India, Mexico and the Philippines."



"MoneyGram can now accelerate and expand our suite of global hybrid solutions and integrate an even larger digital and physical network, making money transfers easier for customers and providing a wider selection of services for the agents who serve them around the world,” said Alex Holmes, CEO of MoneyGram.