Western Union – MoneyGram

Western Union offering to buy MoneyGram is the latest rumor in payments. I have seen many talk about what and why this is happening and how Ripple may be involved. I have to laugh sometime at the speculation that abounds, when all you have to do is look at prior events to form some plausible speculation.

I am sure it is more complicated than what I am about to suggest, but it seems to be a classic David and Goliath situation.

MoneyGram and Uber released the news that there is an offer to Uber Drivers for a discount for remittances. Where and how do you think the current majority of Uber drivers are transferring money back to there families? Well statistically it has to be Western Union as Western Union is the behemoth in money transfers.

Now Western Union is flexing its Goliath muscles and threatening a hostile takeover of MoneyGram. (At least that is the rumor, no official statements are found) This move is not because they want to use RippleNet or XRP or because they see value in acquiring MoneyGram, it is because MoneyGram stands to take a sizable portion of Western Unions market share. (Their Uber Drivers which are consistent, repeat customers.)

Business is Business and this is one logical reason for the rumors.

May 27, 2020

https://www.pymnts.com/news/cross-border-commerce/cross-border-payments/2020/moneygram-uber-offer-discount-on-digital-money-transfers-to-drivers/

June 1, 2020

https://www.bnnbloomberg.ca/western-union-makes-an-offer-to-buy-moneygram-1.1444151