ENGLEWOOD, Colo. & MEXICO CITY--(
BUSINESS WIRE)--The Western Union Company (NYSE: WU), a leader in global payment
services, today announced it will launch international direct to bank
money transfers to Mexico from the United States via the Grupo
Financiero Banorte’s UniTeller network.
“This agreement is a result of the competitiveness of our Remittance
Platform and will enhance the international payment services for our
customers in Mexico. As a leader of remittance processing services,
UniTeller continues to support the end to end services for our customers
in Mexico and abroad”
An agreement recently signed between Western Union and UniTeller, will
allow Western Union customers in the US to send cash directly into
qualifying bank accounts – totaling more than 60 million individual bank
accounts
1. The UniTeller network currently covers top
banks in Mexico.
Planned for launch in the first quarter of 2015, customers will be able
to send international money transfers direct-to-bank from participating
retail Agent locations, www.westernunion.com
and directly from Western Union smart phone mobile applications from the
US.
Ricardo Velazquez, Head of International Banking, Trade Finance and
Financial Institutions of Grupo Financiero Banorte,
said:
“UniTeller and Banorte are leaders in Mexico in the offering of
financial services to the beneficiaries receiving money from their
relatives abroad, continuously seeking for new ways to process
international transfers. With this agreement, beneficiaries of
remittances in Mexico will find it very convenient to open an account at
our bank and directly receive the funds through Western Union with the
benefit of value added banking services.”
“This agreement is a result of the competitiveness of our Remittance
Platform and will enhance the international payment services for our
customers in Mexico. As a leader of remittance processing services,
UniTeller continues to support the end to end services for our customers
in Mexico and abroad,” added
Alberto Guerra, CEO of UniTeller
Financial Services at Grupo Financiero Banorte.
Odilon Almeida, President Americas and European Union of Western Union,
said: “Thanks to this international collaboration, Western Union
customers in the United States can send money directly into Banorte
accounts and soon to other Mexican banks giving customers new choice
based on their use, need and convenience.
“We are excited to offer our customers in Mexico a new way to
conveniently receive money. Although receivers in Mexico continue to
have a strong preference for cash and our retail growth has been solid,
we believe the direct to bank services will bring in new types of
consumers who prefer to receive funds in accounts.
“Expanding into the banking channels of Mexico in collaboration with
UniTeller is a significant development; we are proud to uphold our
promise to continually enhance convenience and choice for our
customers,” said Almeida.
Western Union’s direct-to-bank product cements the company’s advancement
into the bank remittance segment. More than $528 billion was moved
across the world in 2013 in remittances according to the World Bank
2.
Western Union offers direct-to-bank services in 50 countries including
seven of the world’s top 10 remittance receiving developing countries
2—India,
China, Philippines, Egypt, Pakistan, Bangladesh, Vietnam and soon to be
Mexico.
About Western Union
The Western
Union Company (NYSE: WU) is a leader in global payment services.
Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union
Business Solutions branded payment services, Western Union provides
consumers and businesses with fast, reliable and convenient ways to send
and receive money around the world, to send payments and to purchase
money orders. As of September 30, 2014, the Western Union, Vigo and
Orlandi Valuta branded services were offered through a combined network
of over 500,000 agent locations in 200 countries and territories and
over 100,000 ATMs and kiosks. In 2013, The Western Union Company
completed 242 million consumer-to-consumer transactions worldwide,
moving $82 billion of principal between consumers, and 459 million
business payments. For more information, visit
www.westernunion.com.
About UniTeller
UniTeller is an International Money Payments Processor based in the
United States and one of the largest players in Money Transfers to
Mexico, Latin America and Asia. Uniteller is a whole subsidiary of Grupo
Financiero Banorte, one of the largest financial groups in Mexico and
Latin America.
About Grupo Financiero Banorte
Grupo Financiero Banorte (GFNorte ) is one of the leading Financial
institutions in Mexico. After merge IXE Grupo Financiero, formed the 3rd
-largest financial group, and the largest, controlled by Mexican
shareholders, with a current network of 1,267 branches, over 7,000 ATMs,
over 4,900 banking correspondents and more than 63,000 POS terminals.
GFNorte offers products and brokerage services, credit to businesses and
families, estate consulting, investment companies, leasing and
factoring, warehousing, insurance, pensions and retirement savings.
It has the main Administrator Retirement Funds in Mexico, Afore XXI
Banorte. Grupo Financiero Banorte has presence in southern Texas through
Inter National Bank, as well as New Jersey and California through money
transfer companies UniTeller and Motran, and New York, through Banorte
Securities International.
It is one of the banks with better asset quality indicators of the
Mexican financial system and has high levels of capitalization and
liquidity.
1 Source: Mexican National Banking and Securities
Commission (CNBV)
2 Source: World Development Indicators
and World Bank Development Prospects Group (
Top
10 Recipient of Remittances Rank - 2013e)
In an effort to expand its presence in Mexico, Western Union Co.vhas launched Western Union global money-transfer services in collaboration with Farmacias Guadalajara, a Mexican drugstore chain. Through this facility, Western Union will provide its money transfer services in 1,100 drugstores and retail locations spread across Mexico.
The region accounts for around 4% of Western Union’s revenue. It is one of the major receive locations. Receive locations have large inbound remittance markets. The company has been operating in the Mexico corridor for more than a century. Although, Mexico accounts for a significant amount of the company’s annual remittance volumes, the region has witnessed regulatory hurdles.
In fourth quarter 2013, Mexico-based revenue was flat, despite a 20% year-over-year increase in transactions owing to the company’s pricing initiatives in the region. Western Union lost 7,000 locations or approximately 40% of the Mexican network in the third quarter of 2012 as certain Vigo-branded agents did not comply with new requirements and system conversions.
In Jan 2014, Mexico remittances rose an impressive 8.0% year over year, providing a strong start to the year. The U.S.-Mexico corridor is one of the largest remittance corridors, which accounts for approximately 12% of total transactions at Western Union. Transaction volume grew to 5.50 million in Jan 2014, up 7.6% year over year, which was the eighth consecutive month of yearly transaction growth.
We expect the recent improvements in Mexico remittances to continue due to the improving U.S. economy. An improving economy will attract more migrant workers, which will increase demand for remittance. In order to reap benefit from the improving industry environment in the region, Western Union signed approximately 10,000 new locations in Mexico during 2013, which are expected to become active in the next 12 months and will more than double its network in the country.
Another money transfer company Xoom Corp. has significant operations in Mexico. Mexico’s vast remittance market has also caught the attention of Western Union’s close peer Moneygram International, Inc. The company offers its services in the Mexican market in partnership with Visa.
Western Union currently retains a Zacks Rank #3 (Hold).