Canada Post extends fund transfer alliance with MoneyGram

Canada Post is set to expand money transfer services available at more than 6,200 post office and postal outlet locations across Canada. It has extended its 10-year relationship with money transfer company MoneyGram to continue existing services.

And, the new contract will also mean Canada Post counters offering new next-day bill payment services and emergency fund transfers.

John Reis, Canada Post director of retail business development, said the deal extends and expands a “great partnership” that has been in place with MoneyGram since 2002.

Reis said: “Together, we provide fast, cost-effective and easily accessible money transfers for Canadians. We believe the addition of emergency and next day bill payment service will enhance the value proposition at our postal outlets and we will continue to grow financial services for customers.”

MoneyGram, which has its headquarters in Dallas, Texas, is the second largest money transfer company in the world. Along with outlets run by Canada Post, it provides services through post offices in Jamaica, Kazakhstan, Kenya, Italy, Poland, Ukraine, Moldova and the UK.

In Canada, Canada Post customers can send funds to more than 152,000 locations in more than 180 countries across the world without the need for a bank account or credit card through the MoneyGram service.

An agreement between MoneyGram and Canada Post struck last year saw the number of Canadian post offices offering MoneyGram services more than doubling from the previous 3,000.

Dan O’Malley, MoneyGram executive vice president for the Americas and emerging markets, said the latest extension of his company’s partnership with Canada Post underlined the importance of money transfer services as part of services available at postal counters.

He said: “The renewal of our largest, most well-known and respected agent in Canada is a clear sign that the relationship with MoneyGram brings value to Canada Post’s business and customers.”