The Western Union Company
), a leading financial services and communications business has
inked a five-year agreement with a Mexican financial and retail
services institution - Bancoppel. The deal allows Bancoppel to
offer Western Union global money transfer services.
As per the deal, Bancoppel will provide Western Union services
at about 1,000 locations across Mexico. However, initially the
services will be offered at select locations and gradually will
be available in all other locations.
The liaison will help Western Union to target the 22 million
customers of Bancoppel thereby enhancing its clientele base. The
company will combine its expertise and knowledge to provide
innovative and advanced services to the prospective clients.
Bancoppel's focus on providing customized services to its clients
by understanding their needs will also expose mutual customers to
a wide range of high quality financial services.
Western Union in consortium with its Vigo and Orlandi Valuta
brands provide service worldwide through more than 510,000 Agent
locations across 200 countries and territories. The combined
network of agent locations consists of banks, national retail
chains and independent locations.
However, Western Union's Mexican operations suffered a loss of
more than 7,000 agent locations in 2012. The loss was because of
the changes in its compliance related activities on account of a
deal with the State of Arizona. The business model modification
and price reductions also led to the decline. The company now
aims at recouping its business in Mexico through the partnership
Partnerships undertaken by the company aim to comply with its
business expansion objective. Previously, in order to expand its
Argentinean footprint, the company entered a money transfer and
bill payment agreement with a leading retailer in the country -
Carrefour Argentina, in Feb 2013.
Western Union currently carries a Zacks Rank #3 (Hold). Among
others in the industry,
Weight Watchers International Inc.
) carries a favorable Zacks Rank #1 (Strong Buy) while
H&R Block Inc.
American Express Company
) carry a Zacks Rank #2 (Buy).
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WESTERN UNION (WU): Free Stock Analysis
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