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MoneyGram International Reports Third Quarter 2019 Financial Results

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Moneygram confirms that right now 10% of their Mexican Peso volume is going through XRP. That's actually significant.

Hm... still not much lower settlement assets on their sheets. To my understanding thats the figure to watch for real progress with lower prefunding

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1 hour ago, kanaas said:


Hm... still not much lower settlement assets on their sheets. To my understanding thats the figure to watch for real progress with lower prefunding

It'll be a long time before they remove those pre-funded accounts. Crawl, walk, run. once 100% of their volume is going through ODL, expect to see that reduced.

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5 minutes ago, Chris_Reeves said:

It'll be a long time before they remove those pre-funded accounts. Crawl, walk, run. once 100% of their volume is going through ODL, expect to see that reduced.

Exactly! They're a multi billion dollar company with revenues of $300M+ and they're only sending ~$9M via ODL on a weekly basis. They have many more corridors than just US --> Mexico and if ODL makes up only 10% of that corridor then it's currently a drop in the bucket. Looking at this from a glass half full perspective, it's pretty exciting once corridors start opening up. Japan --> US will be a big one once it goes live with SBI, which is an existing MGI partner. Add Bitso expanding in Latin America and Xago opening an exclusive South African fiat onramp - things could get interesting over the next 4/5 quarters. 

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2 hours ago, kanaas said:


Hm... still not much lower settlement assets on their sheets. To my understanding thats the figure to watch for real progress with lower prefunding

It will take a while but I can not wait for the day we see a significant reduction in settlement assets.  Who knows how much moneygram currently has prefunded for just this corridor on a daily basis.  10MM, 25MM, 50MM?  Once 100% of flows for just this one corridor are live on ODL how much of that capital can go to paying down their enormous debt or investing in marketing etc?  This is probably why Brad said they are chomping at the bit to open more corridors!

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4 minutes ago, EasterBunny said:

I’m confused about the term ‘settlement assets’ on their earnings report. Surely they can’t have 3.3B+ trapped in the system? Anyone have an idea what this actually means?

https://www.lawinsider.com/dictionary/settlement-assets

Per the above it sounds like it's cash/cash equivalents that sit on the balance sheet. Good think is that it's declining slightly since December 2018. Hopefully it continues to decrease. 

Edited by Mpolnet

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2 hours ago, EasterBunny said:

I’m confused about the term ‘settlement assets’ on their earnings report. Surely they can’t have 3.3B+ trapped in the system? Anyone have an idea what this actually means?

They have 3.3B+ trapped in the system.  Moneygram's business model is to prefund capital all around the world so their customers can quickly "send money" anywhere.  That prefunded capital is "settlement assets".  

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I’m confused about the term ‘settlement assets’ on their earnings report. Surely they can’t have 3.3B+ trapped in the system? Anyone have an idea what this actually means?

They have around 350k agents. Thats on average about 10k per agent prefunded for payouts. Not so unusual when you talk about 5 days or more to settle with their banks what brings the average below 2k per agent. And those ARE trapped as for every lets say USD in .... there has to go lets say an INR.... out. Those USDs are not send by airplane as you know but by cross border settlement... and the INR has to be instant available with that local agent... The cost to prefund the local INR will be much lower with instant settlement....obvious

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7 hours ago, Archbob said:

Q3 results weren't good, MGI stock took a giant dump today.

Didn't they lose less than anticipated? They had loss, but it wasn't as great as people thought it would be. If the trend continues they can move into profitability, no?

Edited by Grey

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