Western Union Expands in Mexico With Digital Money Transfer
The Western Union Company WU recently launched the Western Union mobile app with omni-channel choice, which will allow customers in Mexico to transfer funds digitally across more than 200 countries and territories. It enables customers in Mexico to send up to $2,999.99 after paying a flat fixed rate of $5.
Currently, customers residing in Mexico can transfer money 24/7 with the help of the Western Union mobile app (iOS and Android) through payment options of their choice such as card in-app or cash and payment at retail. Additionally, this new service gives access to international money transfers at certain retail locations. Customers have the option to receive the money at above 33,000 retail locations as well as at almost all Mexican bank accounts from the United States. They will also be able to send funds to almost any country around the globe without any hassle.
With this expansion, Western Union will be able to boost its digital footprint across countries and territories.
When it comes to international digital money transfers, Mexico is the latest to jump on the bandwagon with other countries like Brazil, Jamaica and Panama in Latin America and the Caribbean region. It is the fourth largest receiver of international fund transfer in the form of remittances. According to the World Bank, Mexico received above $30 billion in 2017 via remittances. And per the country’s Central Bank, Mexicans dispatched $806 million dollars last year to places like the United States, Canada, Ecuador, Colombia, etc.
The company’s cross-border, cross-currency money movement platform is extremely impressive and positions it well for long-term growth. Western Union has doubled its network in Mexico, which in turn, helped it bolster its distribution channels. It is constantly putting in efforts to enhance its demographic penetration and eyeing the emerging economies of China and India, where the remittance market still remains underpenetrated. With operations across 200 countries and territories, it processes an average of 32 transactions every second and also, move nearly $300 billion every year across 130 currencies.
The U.S. to Mexico line of operations has outpaced the market growth over the past many quarters. The company’s growth in terms of digital transactions is expected to generate higher revenues going forward.
Recently, one of its peers, MoneyGram International Inc. MGI has also expanded in Mexico by collaborating with OXXO convenience stores. The deal will allow MoneyGram customers to receive money from across the globe from numerous new locations.
Shares of Western Union have inched up 1.9% in a year’s time, underperforming its industry’s growth of 34.6%. The stock has a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the financial transaction services sector can look into some better-ranked stocks like Cardtronics plc CATM, and WEX Inc. WEX.
Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. Sporting a Zacks Rank #1 (Strong Buy,) the company came up with an average four-quarter beat of 27.17%. You can see the complete list of today’s Zacks #1 Rank stocks here.
WEX provides corporate card payment solutions in North and South America, the Asia Pacific as well as Europe. The company has a Zacks Rank of 2 and managed to deliver an average trailing four-quarter earnings surprise of 2.56%.
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