The Post Office has confirmed MoneyGram will not be returning to Post Office branches, with efforts to remove branding from branches to begin soon.

In a message from the Post Office to partnered retailers sent on 6 November, seen by Better Retailing, the Post Office stated: “We are sorry to say that, after a 28-year partnership, the group deal between MoneyGram and Post Office for postmasters and strategic partners will not be renewed.”

The change comes just a week after Post Office had told branches that negotiations were ongoing, with hopes to bring the service back online.

Explaining the decision, the Post Office blamed MoneyGram for not agreeing to pay partnered stores adequate remuneration.

Branch owner and Post Office non-executive director Elliot Jacobs stated “I have been privy to the latest deal on offer from MoneyGram and support the decision to reject the terms on offer – they did not meet our guidelines and were not in the best interest of all postmasters.”

The Post Office claimed MoneyGram was ‘unable to meet’ guidelines including ‘a secure IT environment’, an ‘extensive network’ favouring ‘all branches equally’, ‘security and certainty for the future’, ‘a healthy remuneration package’ and a ‘compelling product offering’ that would ‘increase footfall into branches.’

MoneyGram has previously hit back at the accusations that it was not offering enough, claiming it was offering a fair price and reliable service for branches.

Post Office outlines compensation for stores who exclusively use MoneyGram

Last week, the Post Office revealed a compensation package for stores, providing those whose only money transfer service was MoneyGram with monthly payments equal to their average MoneyGram remuneration until April 2025. Stores with rivals Western Union will also receive enhanced pay rates.

Branches were also signposted to an opportunity to enter into a direct agreement with MoneyGram to re-introduce its services to their store, but not their Post Office.

The announcement from the Post Office also stated it would be working with MoneyGram to arrange  the removal of all related signage from branches, but warned this would rely on MoneyGram’s ‘timely responses and active participation’.

Despite the loss of the Post Office’s longest standing fund transfer partner, the company said the service remains ‘a key part of our product portfolio’ and promised to explore opportunities with Western Union and other service providers.

Tenby Stores and Post Office owner Vince Malone said the big question is ‘What happens going forward?’ He added  “A number of branches are left without the alternative of Western Union. Will this be pushed out to all those that have lost MoneyGram?. it’s a significant loss for some offices. Some however will struggle due to the customer costs and product availability at where they are sending – I think Money Gram covers transfers to areas which Western Union doesn’t.”

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