The Western Union Company (WU - Free Report) recently launched its money transfer services across all OXXO stores, one of the largest retail chains in Mexico. The self-service feature of this unique offering would ensure speedier fund transfers and receipts at the check out. The OXXO store chain is estimated to serve roughly 11 million customers daily.
OXXO’s vast presence across almost 14000 locations will be highly convenient for Western Union customers. Customers can easily receive funds by completing their payout information independently. Customers can process their payout by calling a national hotline or through dedicated phones and digital devices available in the stores.
The maximum fund transfer limit per day for each user has been set at 1,000 Mexican pesos or approximately $50. Customers who would like to opt for bigger amounts will have the money credited into their debit cards of major banking providers. Customers can also avail OXXO’s Saldazo debit card, which is associated to Banamex savings accounts, for larger payouts.
Western Union eyes growth opportunities in Mexico, which has a large and growing remittance market. The World Bank statistics consider Mexico to be the fourth-largest recipient of remittances globally. In 2015, remittance of nearly $25.7 billion were received in Mexico, up 8.7% year over year. We expect the partnership with OXXO to increase Western Union’s retail agent network to 26, 600 by the end of 2016 from 13,500 as of year-end 2015.
Western Union focuses on innovative strategies to digitize its retail chain network. The company’s strategy is to make both the “Main Street” and the “High Street” brands affordable and available to all customers deserves mention. OXXO’s wide reach will enable Western Union to reach urban, rural and even remote parts of Mexico.
On the other hand, OXXO has shown great cooperation by already chalking out a plan to install dedicated in-store phones at 1200 stores and kiosks at roughly 600 stores. The company believes that the lucrative deal with Western Union would enhance the sale of financial products and services.
Western Union presently carries Zacks Rank #3 (Hold). Some better-ranked stocks from the finance sector include Equifax Inc. (EFX - Free Report) , MasterCard Incorporated (MA - Free Report) and National Interstate Corporation .
National Interstate, a specialty property and casualty insurer, saw the Zacks Consensus earnings estimate increasing 7.6% and 7.3% for 2016 and 2017, respectively, over the last 60 days. The company sports a Zacks Rank #1 (Strong Buy). ). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Equifax, a financial transaction services provider, witnessed its Zacks Consensus earnings estimate inch up 0.4% and 0.2% for 2016 and 2017, respectively, over the last 60 days. The company holds a Zacks Rank #2 (Buy).
MasterCard, another financial transaction services provider, saw its Zacks Consensus Estimate inch up 0.8% and 0.9% for 2016 and 2017, respectively, over the last 60 days. The insurer has a Zacks Rank #2.
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