SWOT Analysis of MoneyGram | MoneyGram Strengths, Weaknesses ,Opportunities and Threats
What is MoneyGram?
MoneyGram is an international money transfer service company which was founded in 1940 with its Headquarters in Dallas, Texas United States.
The company buys and sells money orders, cashier’s checks, traveller’s checks, certified cheques through a network of agents and other banks in more than 200 countries by providing them with a secure internet connection.
This company has built its reputation on its service, reliability and convenience. They have the best rates at par value for money orders, cashier’s checks, bank traveler’s checks which are lower than banks.
2. How is Business Model for MoneyGram?
MoneyGram agents are the people who are representing the company in any location of the world. They are working on some commission basis but they are also paid some fixed amount on some basis.
MoneyGram also tries to cooperate with other companies so that it can earn revenue from another source named as merchant servicing accounts where MoneyGram sells its products and services to businesses.
3. How does MoneyGram makes money?
a) Transfer fee. MoneyGram charges transfer fee to their customers. It is based on the amount of money that the customers want to send.
b) Commission. MoneyGram receives commission from its agents who are selling their services or products through these sources of income, which are merchant servicing accounts and money order sales.
c) Cash withdrawal fee MoneyGram gives its customers an option to withdraw money in cash at their convenience through ATM (automated teller machine).
d) Shipping and handling fees. This is applicable when a customer chooses to withdraw the money from the agent directly.
e) Fixed commissions. MoneyGram charges $10 per month for merchant servicing accounts and $7 per month for money order sales. ‘
f) Debit fees. MoneyGram charges this fee to their customers who are making transactions through debit card.
g) Card fees. MoneyGram charges this fee to their customers who are making transactions through credit card.
h) Bank rates and exchange rates. MoneyGram receives exchange rate from its bank and it transfers it to its customers. Local banks or partner banks also give MoneyGram some other fee like commission, transaction and ATM fees depends on the location of the customer and also on the country where he is sending his money. I) Merchant servicing accounts. MoneyGram gives many options to their customers to withdraw money from them. It offers them ATM, prepaid debit cards, check or bill pay. The company pays some initial fee for it and gets back some other fees which depend on the location of the ATM, the use of the card and also on the other company which is providing these services.
J) Money order sales. MoneyGram agents sell money orders and they get commission for it. It is based on the amount of money that the customers want to buy these money orders.
K) Insurance. Customers can add insurance on their checks and traveller’s checks when they purchase them at the time of buying. It costs some extra fees but it is worth to pay for it if something happens to the checks while they are in transit.
4. MoneyGram Competitors
The main competitors of MoneyGram are:
a) Western Union: Western Union is another company that is into the same business of money transfer. It also offers services at par value for money orders, cashier’s checks, bank traveler’s checks which are lower than banks. It is the second largest money transfer service company of the world, with headquarters at Colorado, United States
b) Ria: Ria has its head office in New Delhi India. It provides worldwide money transfer services to its customers.
c) PayPal: PayPal is an online payment service company which allows people to send funds to one another using the internet.
d) Moneybookers: Moneybookers is an online payment service company which allows people to send funds to one another using the internet.
e) Remitly global: Remitly global is a money transfer service company from United States which caters to the immigrants in the United States. It is providing services worldwide.
f) Wise wire: Wise wire is an international remittance service company which was founded by Rajesh khanna in 2008. It caters to the immigrants in the United States.
5 SWOT Analysis of MoneyGram
Strengths of Moneygram
a) Loyalty and recommendations: MoneyGram is a company that has been around for many years and has a strong client base which is the key to its prosperity. Every customer of this company has some relation with this company so they will continue their patronage to it for future demand.
b) Easy availability: This Company is available in almost every place around the world. It has many number of offices in its headquarter and also in various parts of the world. The customers can easily access it and can get their requirements in very short time.
c) Promotion: Promotion is the key to prosperity and this company uses different promotional techniques to enhance its business and raise its sales volume.
d) Efficient service: This Company has got a very good service for transfer of money from one place to another. Its customers give good reviews about the service of this company.
e) Strong network of branches: The Company has got a very strong network of branches in various parts of the world. This network caters to the needs of its customers and acts as a support to them at different locations.
Weaknesses OF MoneyGram
a) Difficulties in payment: The Company faces difficulties in payment because the amount of money must be sent to another place. Apart from this if the money is sent through another person it is very difficult to trace it and there is a possibility of loss.
b) Too expensive: It is very expensive to make transactions if money is transferred from one place to another through this channel. The company charges a very high commission rate from the customers which they find it difficult to bear.
c) Online service: MoneyGram has an online service and it takes more time and cost of transfer is also high in this channel. The customers do not like this channel due to its inefficiency and time consuming nature.
d) Untrustworthy: Many customers also consider this company as an untrustworthy. The company is not willing to give the full information regarding its services and charges.
d) Slow transaction: This Company can take a long time in executing its transactions and the transfer of money may also be delayed. The customers are dissatisfied with the service of this company.
Opportunities of MoneyGram
a) Merger and acquisition: There is a possibility of merger and acquisition in this company. The company has a very strong network of branches which can be merged with other companies for better results.
b) Global expansion: MoneyGram can expand its business internationally by using the services of different companies. It should be ready to use the opportunities coming to it from worldwide network.
c) Partnership: This Company can also enter into partnership with different companies for increasing its business. It can also increase its business with the help of new technologies and research & development.
d) Online facility: This Company can also explore the opportunities of online facility, which will increase its business.
e) Competition: The opportunities for MoneyGram come into existence because of the reasons that other companies are there in this industry and can give competition to it.
f) New product: MoneyGram can develop a new product through research and development which will attract more customers to its network
7Big potential in international business: There is a high demand for money transfer in the international market.
Threats of MoneyGram
a) Competition: There are various companies which are into the same business to MoneyGram. These competitors can reduce its business and may also reduce its value to a great extent.
b) Internet problems: The internet problems can compromise the services of this company and also affect its business considerably.
c) Customers dissatisfaction: The companies have a strong network of branches which is a support for it to serve their customers. But due to unsatisfied customers there is a possibility of closure of these branches.
d) Regulations: Regulations may also cause problems for this company in respect to employment, payment of taxes and also in terms of linking with other companies.
e) Government control: Extensive control from the government may affect this company adversely because of its network of branches in different parts of the world.
a) How long does MoneyGram take to process?
MoneyGram usually takes up to 3-5 days for delivery. But if your country is majorly served by it, you will be able to receive your order in 1-3 days.
b) How does MoneyGram work for receiving money?
A MoneyGram money order can be sent through your registered fax number or you can send your MoneyGram to your online banking through an email. You can also use a MoneyGram money order in US Post office with the help of a Bank Draft.
c) How does MoneyGram work for sending money?
You use this way to send funds from the place where you want to deposit the funds, into the place where you want to pay out.
To send money, you need to send $ 1000.00 in cash by mail or wire transfer. The receiver would only need to deposit the amount of $ 1000.00 in their bank account or credit card holder’s account or money order account.
d) How does MoneyGram work for depositing money?
To deposit money, you need $ 1000.00 in cash, it can be in the form of US Post Office Money Order, Credit Card -Visa or MasterCard or Bank Draft.
e) Can I pay money with Moneygram on my credit card?
Yes, you can use your credit card and pay through this service. You can also use your bank account and pay the money by depositing the funds on their online banking system.
f) How does MoneyGram verify identity?
You have to upload a copy of your identity card or passport on the website. You need to enter the verification code that appears on the website and then pay for your fund transfer.
g) How can I track where my order is at?
You can check your order status by logging in to your online banking account or by calling customer care.
h) Can I cancel an order?
Yes, you can cancel the order. There are three ways that you can do this. You can call customer care or log into your account and cancel it. You can also cancel the payment by logging in to your online banking account.
i) What if I lose my MoneyGram money?
First of all, you must contact customer care and ask for the identification of the sender of your money. Then they will advise you on how to get back your funds if it is lost or stolen.
You will have to fill out a form and send it back to the company. You can also use a process of tracing that is available to you. In this way, you will have the security of your money.
j) What happens if I place my order and it gets lost?
This is a chance for you to get more money for free. It has plans to compensate by offering a refund or a replacement of your money.
You can use a process of tracing that is available to you so that they can trace the location of your money and send it back to you as soon as possible.
k) Is MoneyGram a bank?
No, MoneyGram is not a bank but you can use the services that are available from banks. You can check your account status, transfer funds from your account to a friend or family members and also apply for a loan.