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Ericsson & HomeSend Partner to Simplify Remittances in EMs

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Swedish communication technology and services giant, Ericsson (ERIC - Free Report) has entered into a partnership with HomeSend. This deal is aimed at accelerating the adoption of international remittances through mobile phones across emerging markets.

HomeSend is fast bridging the gap between financial institutions, non-financial entities and mobile network operators. HomeSend is the result of an alliance between MasterCard, eServGlobal and BICS.

This partnership between the two companies will provide Ericsson access to HomeSend's expanding network of money transfer operators (MTOs), cash agents and banks in over 200 countries. The Ericsson Wallet Platform is now certified by HomeSend. Consequently, millions of users who leverage the Ericsson-powered mobile wallet globally will enjoy easier and faster international payment services. These services will have new levels of flexibility, options and value in remittance.

Together, the two entities are aimed at delivering a cost-effective, prompt and simple way to financial service providers to connect the HomeSend global money transfer hub with Ericsson's mobile money offering around the world.

Ericsson Interconnect is another of Ericsson's Mobile Financial Services solutions. This product is a cloud-based financial transactions switching and mediation service, which aims to contribute in making Financial Services providers accessible, using any wallet or mobile banking platform.

ERICSSON LM ADR Price and Consensus

Through this joint initiative, the companies will provide improved access to digital inflows to millions of new unbanked consumers. This collaboration will aid bridge the gap between finance and telecommunication service providers, empowering mobile wallet users to transmit money through their mobile phones. It will also help financial institutions to offer the ease of digital money transfers.

Ericsson’s technology has been enabling telecom players and financial services providers to adapt to the rapidly changing landscape, and expand the financial services available across the world.

However, reduced consumer telecom spending is playing a spoilsport for Ericsson. Also, stiff competition and currency fluctuations have been hurting this Zacks Rank #4 (Sell) company’s performance. Ericsson is also grappling with waning sales in some key end-markets, slowdown in 4G deployment in China and ongoing industry consolidation among customers and major rivals.

Stocks to Consider

Some better-ranked stocks in the same space include Ubiquiti Networks, Inc. (UBNT - Free Report) , Motorola Solutions, Inc. (MSI - Free Report) and Novatel Wireless Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Networking products and solutions provider Ubiquiti Networks has an excellent earnings surprise history, beating estimates each time, over the trailing four quarters. It has a positive average surprise of 13.2%.

Motorola Solutions is engaged in providing communication equipments, software and services. The company has a striking earnings surprise history over the trailing four quarters, having beaten estimates all through, for an impressive average beat of 16.4%.

Novatel Wireless – a provider of wireless data modems and software – has been seeing positive analyst estimate revisions of late. Its Zacks Consensus Estimate for the current year has narrowed from a loss of 35 cents 60 days ago, to a loss of 30 cents today, which reflects bullish analyst sentiment.

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