MoneyGram and PayPal Agreement Brings Together Online and Physical Worlds

  MoneyGram and PayPal Agreement Brings Together Online and Physical Worlds

117 million active PayPal account holders will be able to load, send, withdraw
      funds from their accounts at MoneyGram locations around the world

Business Wire

DALLAS -- October 22, 2012

MoneyGram (NYSE: MGI), a leading global money transfer company, today
announced a new global agreement with PayPal that will enable consumers to
easily access money in their digital wallets in the physical world. PayPal’s
117 million active account holders will now have the option to put cash in and
take funds out of their PayPal accounts at MoneyGram locations.

This agreement brings together the world’s leading e-commerce payment company
with the world’s second-largest global money transfer company to give
consumers a fast, convenient and secure way to easily get funds out of their
PayPal account and put cash in via MoneyGram locations. MoneyGram’s network
currently includes more than 284,000 locations in 196 countries.

The new service options created through this agreement represent the first
global solution for consumers who do not have or use a bank account or credit
card to fund and maintain a PayPal account, giving them access to e-commerce.
In addition, for the first time, PayPal customers will have a global solution
for putting cash into a PayPal account, and a global option to fund, withdraw,
and send cash from a PayPal account. These services initially will be piloted
in the United States in early 2013, followed by a phased roll-out in the
United States and beyond.

“This agreement is a significant milestone for MoneyGram. It represents a new
level of innovation and enhances our growth into new areas of the payments
industry,” said Pamela H. Patsley, MoneyGram chairman and CEO. “We believe
this agreement furthers our goal of making it easy for people to send and
receive money in the ways they want, wherever they are in the world, and
significantly increases the possibility of e-commerce to MoneyGram consumers.”

“With their global reach and world-class money transmitting capabilities,
MoneyGram is the perfect company for us to innovate with,” said Mark Lavelle,
Senior Vice President of Strategy and Business Development at PayPal. “Through
this new initiative, more consumers will be able to take advantage of PayPal’s
digital wallet, and shop at places like eBay or many of the millions of
merchants that accept PayPal.”

About PayPal

PayPal is the faster, safer way to pay and get paid online. The service allows
people to send payments without sharing financial information, with the
flexibility to pay using their account balances, bank accounts (where
available), credit and debit cards in various markets. PayPal is an eBay
(Nasdaq: EBAY) company and enables global e-commerce with over 117 million
active accounts in 190 markets and 25 currencies around the world. PayPal is
headquartered in San Jose, California and its international headquarters is
located in Singapore. More information about the company can be found at

About MoneyGram International

MoneyGram International, a leading money transfer company, enables consumers
who are not fully served by traditional financial institutions to meet their
financial needs. MoneyGram offers bill payment services in the United States
and Canada and money transfer services worldwide through a global network of
more than 284,000 agent locations – including retailers, international post
offices and financial institutions – in 196 countries and territories. To
learn more about money transfer or bill payment at an agent location or
online, please visit or connect with us on Facebook.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including statements
with respect to, among other things, the financial condition, results of
operations, plans, objectives, future performance and business of MoneyGram
and its subsidiaries. Forward-looking statements can be identified by words
such as “believes,” "estimates," "expects," "projects," "plans,” "will,"
"should," "could," "would" and other similar expressions. These
forward-looking statements speak only as of the date they are made, and
MoneyGram undertakes no obligation to publicly update or revise any
forward-looking statement, except as required by federal securities law. These
forward-looking statements are based on management's current expectations and
are subject to certain risks, uncertainties and changes in circumstances due
to a number of factors. These factors include, but are not limited to: ongoing
investigations involving MoneyGram by the United States federal government and
several state governments which could result in criminal or civil penalties,
revocation of required licenses or registrations, termination of contracts,
other administrative actions or lawsuits and negative publicity; our ability
to maintain key agent or biller relationships, or a reduction in transaction
volume from these relationships; our substantial debt service obligations,
significant debt covenant requirements and credit rating; our capital
structure and the special voting rights provided to designees of Thomas H. Lee
Partners, L.P. on our Board of Directors; sustained financial market
illiquidity, or illiquidity at our clearing, cash management and custodial
financial institutions; continued weakness in economic conditions, in both the
United States and global markets; a material slow down or complete disruption
of international migration patterns; litigation involving MoneyGram or its
agents; which could result in material settlements, fines or penalties;
fluctuations in interest rates; our ability to manage credit risks from our
retail agents and official check financial institution customers; our ability
to manage fraud risks from consumers or agents; the ability of MoneyGram and
its agents to maintain adequate banking relationships; our ability to retain
partners to operate our official check and money order businesses; our ability
to maintain sufficient capital; our ability to attract and retain key
employees; our ability to successfully develop and timely introduce new and
enhanced products and services; investments in new products, services or
infrastructure changes; our ability to adequately protect our brand and
intellectual property rights and to avoid infringing on the rights of others;
our ability to compete effectively; the ability of us and our agents to comply
with U.S. and international laws and regulations, including the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010; changes in tax laws or
an unfavorable outcome with respect to the audit of our tax returns or tax
positions, or a failure by us to establish adequate reserves for tax events;
our offering of money transfer services through agents in regions that are
politically volatile or, in a limited number of cases, are subject to certain
restrictions by the Office of Foreign Assets Control; a security or privacy
breach in our facilities, networks or databases; disruptions to our computer
network systems and data centers; our ability to effectively operate and adapt
our technology to match our business growth; our ability to manage risks
related to the operation of retail locations and the acquisition or start-up
of businesses; our ability to manage risks associated with our international
sales and operations; our ability to maintain effective internal controls; and
the risks and uncertainties described in the "Risk Factors" and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations”
sections of MoneyGram’s public reports filed with the SEC, including
MoneyGram’s Form 10-K for the year ended December 31, 2011 and its Forms 10-Q
for the quarters ended March 31, 2012 and June 30, 2012.


Patty Sullivan/Sophia Stoller, +1-214-303-9533
Larry Meltzer, +1-214-379-3701
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