Western Union expands in Mexico with digital money transfer

Western Union companyWU recently launched the Western Union mobile app with omnichannel choice, which will allow Mexican customers to transfer funds digitally in more than 200 countries and territories. It allows customers in Mexico to send up to $ 2,999.99 after paying a flat rate of $ 5.

Currently, customers residing in Mexico can transfer money 24/7 using the Western Union mobile app (iOS and Android) through the payment options of their choice, such as the built-in card. with app or cash and retail payment. In addition, this new service provides access to international money transfers at certain points of sale. Customers can receive cash at over 33,000 points of sale as well as virtually any Mexican bank account in the United States. They will also be able to send funds to almost any country in the world without any problem.

With this expansion, Western Union will be able to increase its digital footprint in all 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 recipient of international remittances in the form of remittances. According to the World Bank, Mexico received more than $ 30 billion in 2017 through remittances. And according to the country’s Central Bank, Mexicans sent $ 806 million last year to places like the United States, Canada, Ecuador, Colombia, etc.

The company’s cross-border and inter-currency money movement platform is extremely impressive and positions it well for long-term growth. Western Union doubled its network in Mexico, which enabled it to strengthen its distribution channels. It is constantly striving to improve its demographic penetration and is eyeing the emerging economies of China and India, where the remittance market is still under-penetrated. With operations in 200 countries and territories, it processes an average of 32 transactions per second and also moves nearly $ 300 billion annually in 130 currencies.

The US-Mexico line of operations has outpaced market growth in recent quarters. The growth of the company in terms of digital transactions is expected to generate higher revenues in the future.

Recently, one of its peers, MoneyGram International Inc. MGI has also expanded to Mexico by collaborating with OXXO convenience stores. The agreement will allow MoneyGram customers to receive money from around the world from many new locations.

Western Union shares edged up 1.9% year on year, underperforming its industry growth by 34.6%. The stock has a Zacks Rank # 3 (Hold).

Actions to consider

Investors interested in the financial transaction services industry may look to some higher ranked stocks like Cardtronics plc CATM and WEX Inc. WEX.

Cardtronics plc provides automated financial services to consumers through its network of automated banking machines (ABMs) and multi-function financial services kiosks. Sporting a Zacks No.1 (strong buy) ranking, the company achieved an average pace of 27.17% over four quarters. You can see The full list of today’s Zacks # 1 Rank stocks here .

WEX provides corporate card payment solutions in North and South America, Asia-Pacific as well as Europe. The company has a Zacks ranking of 2 and has managed to deliver an average surprise of 2.56% over the past four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.