International remittance provider MoneyGram flagged a rapid increase in transactions made to mobile wallets during May, as lockdown measures due to the Covid-19 (coronavirus) pandemic continued across several countries.
In a business update, the company said the number of digital payments processed was up 100 per cent year-on-year in May, a further increase on already significant growth booked in Q1 when digital transactions on its platform were up 57 per cent.
The company attributed the latest increase to strong demand for mobile wallet and direct to bank account deposits. Between these two segments volumes increased 156 per cent year-on-year in May.
Growth rates, it noted, were most marked in countries such as the Philippines, where transactions to mobile wallets jumped more than 200 per cent.
The update follows concerns raised by several authorities and organisations about a dip in remittances received in developing markets during lockdowns, with access to physical money collection channels hampered.
In April, The World Bank warned global remittances could fall by 20 per cent in 2020 due to issues related to the pandemic, with governments and service providers encouraged to ease access to digital transfers and mobile money services.
MoneyGram’s update comes weeks after media reported the company was the subject of takeover interest from rival Western Union.Subscribe to our daily newsletter Back