Western Union Co. is making a bid to buy rival Moneygram International Inc., a move that would combine the nation's two largest remittance services, according to a Bloomberg.com report.

The report, citing a single unnamed source, stated Western Union has made a formal takeover offer amid a climate where traditional money transfer services are struggling to compete against startup fintechs that can provide low cost, cross border funds transfer without the need to go to a retail pickup location. 

MoneyGram has struggled during the COVID-19 pandemic, as stay-at-home orders forced it to close many locations around the world. 

Western Union reported it has started to recover from the impact of the COVID-19 lockdown, while digital remittances have risen sharply.