The partnership will empower PayPal account holders to deposit cash and withdraw it from more than 284,000 locations in 196 nations, globally.
The services will be initially rolled out in the beginning of 2013 in the US and gradually to other countries, across the globe.
MoneyGram chairman and CEO Pamela Patsley said, "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."
PayPal senior vice president of strategy and business development Mark Lavelle said, "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."
The e-commerce payment company has active accounts in 190 markets and 25 currencies around the world.
Headquartered in Dallas, Texas, MoneyGram provides money transfer services globally and bill payment services in the US and Canada, through a global network of more than 284,000 agent locations.
