Western Union (WU) Ties Up to Solidify Footprint in Mexico
The Western Union Company WU recently collaborated with the Private Assistance Institution of Mexico, Fundacion Donde. The institution has been catering to the education needs of the country’s children for over ten decades.
The partnership equips 332 branch offices of Fundacion Donde to offer enhanced money transfer services of Western Union. Therefore, it will be a great opportunity for the partners’ clients to seamlessly and safely send as well as receive money across WU’s expansive network spanning more than 200 countries and territories.
The maximum payout limit per remittance that has been allotted to Mexican families using WU’s remittance services at the abovementioned Fundacion Donde branches has been fixed at $50,000 MXN. Additionally, the money transfer services can be availed on all days of the week.
The recent tie-up reinforces Western Union’s efforts to strengthen its extensive network, generate development opportunities, minimize financial inequalities and extend a hassle-free money transfer experience for its customers.
Apart from offering increased and varied money transfer choices to Mexican families, Western Union’s keen eye to strengthen its presence in the country can also be reflected through the latest move. And Fundacion Donde seems to be the apt partner for complementing WU’s endeavor as the former boasts a solid presence in Mexico.
The 332 branches of Fundacion Donde, which is a significant number, will result in greater utilization of Western Union’s money transfer services. This, in turn, might boost its money transfer revenues in the days ahead and provide an impetus to its top line as WU primarily derives its revenues from consideration paid by customers to transfer money.
The intensified focus of Western Union in establishing a solid footprint in Mexico can be attributed to the significant remittance receipts witnessed by the country. Per the analytical report of Banco de Mexico, remittance income from overseas witnessed an annual growth of 11.2% in February 2023.
Therefore, Western Union seems well-poised to occupy a significant share in the remittance market of Mexico, thanks to its speedy and affordable money transfer services. In March 2023, WU teamed up with one of the world’s largest retail chains - 7-Eleven Mexico - to let the country’s consumers avail of WU’s remittance services at over 1,800 locations.
Several tie-ups with financial service providers and substantial investments pursued over the years have imparted strength to WU to build a powerful digital platform. The strength of the platform makes it the preferred partner for conducting money transfers across every corner of the globe.
Shares of Western Union have gained 4.1% in the past three months compared with the industry’s 2.3% growth. WU currently carries a Zacks Rank #3 (Hold).
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Shares of RCM Technologies, Rollins and WEX have gained 57.2%, 14.2% and 0.3%, respectively, in the past three months.
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