MoneyGram (NASDAQ:MGI), a leading player in the cross-border P2P payments and money transfers market, announced today that it is partnering with Coinme, operator of the largest licensed cryptocurrency cash exchange in the U.S, to enable customers to purchase cryptocurrency with cash and withdraw cryptocurrency holdings in cash at thousands of retail locations in the U.S.
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According to the press release, there are less than 20,000 cryptocurrency kiosks in the world today and the two companies plan to expand access to cryptocurrencies by creating thousands of new point-of-sale locations to buy and sell bitcoin and other digital cryptocurrencies.
Timeline for the launch
The plans entail launching the service at select MoneyGram locations starting in the U.S. in the coming weeks. The services will be offered for Bitcoin initially with plans for additional cryptocurrencies to be made available shortly thereafter.
The partnership also has plans to offer similar services in some international markets in the second half of 2021.
Management’s take on the partnership
“This innovative partnership opens our business to an entirely new customer segment as we are the first to pioneer a crypto-to-cash model by building a bridge with Coinme to connect bitcoin to local fiat currency,” said Alex Holmes, MoneyGram Chairman and CEO. “Our unique, global network is an incredibly valuable asset, and we’re excited to open our platform to Coinme as we increasingly look to capture new growth by monetizing our network to new use-cases.”
“MoneyGram has spent more than 80 years building one of the world’s largest P2P payment networks,” said Neil Bergquist, Coinme CEO. “By integrating its global infrastructure with our licensed crypto exchange technology, we can enable the purchase and sale of cryptocurrencies across its system using cash. This is a major milestone for the bitcoin and cryptocurrency communities, and for the millions of people who will benefit from a trusted, easy and affordable onramp to digital currency.”