CoreStates Financial Corp. and Moneygram Payment Systems Inc. have reached an agreement that will allow MoneyGram to use CoreStates' 104-country global payments network to clear and settle international money transfers.
This is the first such partnership between a bank and a money transfer company. Moneygram will use CoreStates' 1,200 correspondent banks to settle most of its international foreign exchange payments, CoreStates said in a release.
Moneygram expects to wire over $1.5 billion cash via 20,000 agents in 92 countries this year. Harry G. Hayman 3d, managing director for foreign exchange and institutional sales at CoreStates Capital Markets, said the deal would help Moneygram expand its role as a "global player in nonbank money transfers" and reduce spreads on foreign exchange transactions, thereby giving the firm greater control over foreign-exchange-related costs and benefits.