MINNEAPOLIS — U.S. Bank and MoneyGram have joined forces to provide international money transfer services through U.S. Bank branch offices in an effort to capture a greater share of the international remittance business. The contract makes U.S. Bank MoneyGram's largest bank affiliate in the United States.
The Inter-American Development Bank in Washington, D.C. estimates that more than $30 billion in remittances are expected to be sent from the United States to Latin America during 2004.
U.S. Bank will offer MoneyGram in 213 branches in Chicago, Los Angeles, Milwaukee and San Diego in the first phase, which will be up and running in August, with plans to offer the program in all branches in 24 states by early 2005.
According to a news release, U.S. Bank launched two Mexican remittance programs in 2003. The card-based Secure Money Transfer product and relationship with Mexico's L@Red de la Gente provides consumers with low cost options to send funds to more than 20,000 ATMs or 750 L@Red de la Gente locations in Mexico. L@Red de la Gente is part of the MoneyGram network.
The addition of the MoneyGram network opens additional outlets in Mexico and access to 160 other countries.
"This alliance makes a proven customer convenience available to even more people who have money transfer needs beyond Mexico,"said Richard Davis, vice chairman of commercial and consumer banking at U.S. Bank.
Price of transfers will vary based on the dollar amount being transferred and the destination. MoneyGram has 68,000 outlets in more than 160 countries, including more than 6,000 outlets in Mexico.
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