Alibaba's financial arm buys US money transfer firm MoneyGram

Ant Financial, e-commerce giant Alibaba's financial arm, has struck a deal to acquire American money transfer major MoneyGram for $880 million, which will expand its business in the US after successful forays in the booming Indian and Thai markets.

"The acquisition of MoneyGram is a significant milestone in our mission to bring inclusive financial services to users around the world," Eric Jing, chief executive officer of Ant Financial Services Group in a statement on Thursday night.The transaction will help expand Ant Financial's business following its successful partnerships with Paytm in India and Ascend Money in Thailand, according to the statement.

The company owns Alipay, one of China's biggest online payment platforms, and controls the company that manages the country's largest money market fund, Yu'ebao.

The transaction will connect MoneyGram's money transfer network of 2.4 billion bank and mobile accounts and 350,000 physical locations with Ant Financial's users,

it said.MoneyGram will remain headquartered in Dallas and continue to operate under its existing brand, it said. Alex Holmes, CEO of MoneyGram, said Ant Financial is an

ideal partner.