Earthport has announced the launch of a new service in partnership with MoneyGram (NASDAQ: MGI). MoneyGram is the second-largest money transfer company in the world and has $1.45bn in annual revenues. Through this partnership, MoneyGram customers will be able to send money quickly and conveniently to any RON bank account in Romania. The World Bank estimates that $3.2bn was sent to Romania in 2015, giving Earthport access to a large potential market. We are not making any changes to our forecasts but see this as another important strategic partnership for the group, with scope to expand the relationship with MoneyGram into other territories in due course. We remain convinced that Earthport is well placed to leverage its position in the cross-border payments market and believe that the risk/reward for investors is highly attractive at the current share price.
