Money transfer service MoneyGram International has signed a business alliance with Spanish telecoms operator Telefónica (NYSE: TEF), to make it easier for the latter's customers to remit money via MoneyGram's international network, the companies said in a statement.
Customers can send funds via Movistar Remesas, which is a division of Telefónica. MoneyGram's network reaches 190 countries where it has a total of 207,000 agent locations.
Money transfers originating in Spain account for 5.7% of Bolivia's GDP, 3.6% of Ecuador's GDP, and more than 1% of those of the Dominican Republic and Colombia, according to the release. The companies also cited research from the World Bank showing that Latin America receives more than 38.3bn euros (US$52.2bn) in money transfers every year, equivalent to 70% of private investment in the region.