MoneyGram to expand in China

MoneyGram International, the world's second largest remittance firm, has signed agreements with several domestic banks that will act as its agents in the local market, the company said.

MoneyGram's local partners are the Industrial and Commercial Bank of China (ICBC) <601398><1398>, China CITIC Bank<601998>, Bank of Communications (BoComm)<601328> <3328> and Industrial Bank<601166>. The money transfer network includes 20,000 agents nationwide. MoneyGram will focus on the expansion in Guangdong, Fujian, Beijing, Heilongjiang, Liaoning, Jilin provinces, where more people go abroad for immigration or study.

Philip Milne, CEO of MoneyGram, said the firm will apply low-price strategy to increase its market share in China. Under this pricing strategy, the commission and service charges will be lower than its local rivals, in some cities even 20% lower.

The company entered China in 2003 and established an office in Shanghai in 2004. MoneyGram will increase investment in China, as China is expected to be the top 1 to receive global immigrant remittances this year.