The global payment company said that the service will be initially launched in the UK this year, while expansion into other markets is likely to happen later.
Ukash chief executive officer David Hunter said that the collaboration will enable the company to offer online payment services to people who may not use traditional banking facilities.
"Our job is to offer more convenient sources for people to use their cash in the ‘connected world,’ which may often appear to be accessible only to credit or debit cardholders," Hunter added.
Ukash, a UK-based online cash payment provider operates in 57 nations across the globe and has more than 460,000 points of sale.
It offers safe, secure and convenient online payment facility to customers, protects personal identity and financial information while making online transactions, reduces the threat of credit and debit card fraud for consumers and repudiations and charge-backs for retailers.
MoneyGram provides bill payment services in the US and Canada and money transfer services across the world through a network of agent locations including retailers, international post offices and financial institutions in 198 nations and regions.
