MoneyGram announces a 4% ownership stake in Coinme. This partnership will allow consumers to buy and sell Bitcoin from Coinme with cash at participating MoneyGram retail locations.
After a Series, A funding round, MoneyGram has made an investment of 4% in Coinme, the crypto ATM provider. They are the second-largest money transfer provider globally.
In a statement released on Jan 5, 2022, the company announced a 4% ownership stake in Coinme. According to the press release on Wednesday, the two companies indicated that they would be undertaking more initiatives in the future to deepen their ties.
This press release subsequently comes after the May 2021 announcement. It declared the partnership of MoneyGram with Coinme to provide customers with the option to buy and sell Bitcoin for cash. The service will be able at 12,000 locations in the United States.
MoneyGram is a money transfer service that allows people to send money to their digital wallets or bank accounts. It is a digital P2P payments platform.
The platform provides users with the option to conduct money transfers, money orders, mobile top-up, prepaid card reload services, bill payments, and an opportunity for users who do not have bank accounts. Moreover, it has a presence in more than 200 countries with 350,000 agency locations.
Currently, the platform allows users to exchange their crypto holdings for cash at PoS (Point-of-Sale) outlets.
Coinme, on the other hand, is a Bitcoin ATM company located in the United States. It is present in over 20,000 locations in the U.S. Also, it is the first state-licensed cryptocurrency cash exchange system, founded in 2014.
What Is MoneyGrams Future Vision Here?
The CEO of MoneyGram, Alex Holmes, in his statement, said that the company is bullish about the vast opportunities that exist in the cryptocurrency world. In addition, they hope to act as a bridge to connect digital assets like cryptocurrency to local fiat currency.
Holmes further added that the cash-to-bitcoin offering with Coinme allowed their company access to a whole new consumer segment.
Neil Bergquist, the CEO of Coinme, remarked that their relation with MoneyGram will serve as an incredible opportunity to continue their international expansion in the crypto world.
The association between the two companies will help build a crypto-to-cash model. Additionally, the press release mentions that strategic investments with digital currency exchange companies will further their position as an industry leader in utilising blockchain technology.
This partnership will combine Coinme’s cryptocurrency exchange technology and MoneyGram’s application programming interface (API) payments platform. This will provide cryptocurrency or bitcoin at Point-of-Sale (PoS) locations in the United States. As a result, customers will be able to buy and sell cryptocurrencies from these PoS terminals.