MoneyGram (Nasdaq: MGI) is buying Nexxo Financial Corp.’s full-service money transfer kiosk business.
The buyer, a Dallas-based money transfer company, will acquire about 200 kiosks in California and Texas. Consumers can use the kiosks for money transfers and bill payments. Terms of the deal were not disclosed.
Nexxo, headquartered in Burlingame, Calif., develops kiosks that allow users to transfer money or pay bills.
MoneyGram offers transfer services to 198 countries, and bill payment services to the U.S. and Canada.
The deal follows Net Element International’s (Nasdaq: NETE) purchase of Quickpay, a payment terminal network. Quickpay allows consumers to pay for goods and services with cash through terminals similar to ATMs.
Both deals target the large percentage of U.S. households identified by the Federal Deposit Insurance Corp. as unbanked or underbanked. The FDIC has estimated that 60 million U.S. residents don’t use traditional banking channels.