MoneyGram, a provider of money transfer and payment services, has inked a new agreement with Bank of South Pacific that will allow customers in Samoa and Tonga to receive cross-border remittances.

A World Bank study revealed that over $200m is sent to Samoa and Tonga per year, most of which comes from Australia, New Zealand and the US.

MoneyGram senior regional director for Australia and Oceania Michael Minassian said: "While we continue to see growth in the economies in Samoa and Tonga, many of the citizens are still dependent on remittances from family members from around the world to help with daily expenses.

Bank of South Pacific general manager of retail Paul Thornton said: "We are happy to continue to meet and service the money transfer needs of our customers with the MoneyGram product."

The latest agreement comes after the bank acquired the banking operations of Westpac Banking Corporation in several Pacific markets.