WEX Allies with Higher One - Analyst Blog

By
A A A

Formerly known as Wright Express Corp, WEX Inc. ( WXS ) announced a strategic alliance with Higher One to provide easy and secure online payment solutions to higher education institutions. Accordingly, a new service - VendorPay - was unveiled by both the abovementioned companies to deliver cost-effective payment solutions.

Through the launch of VendorPay, WEX and Higher One aim to tap the potential higher education market, whereby WEX's technological expertise complements well with Higher One's high penetration in this market. Thus, both the companies will offer online payments verticals through VendorPay, to enable educational campuses can conveniently handle issues related to travel, medical and insurance.

Further, the use of VendorPay completely erases the use of paper checks for making payments to the vendors and suppliers on the campuses. It also eases the disbursement procedure of the vendors and suppliers, who can now receive payments swiftly and more predictably. Additionally, VendorPay streamlines and amalgamates detailed report and data for remittance and reconciliation for both the institution and the vendor, thereby authenticating the whole payment process.

WEX will benefit from the launch of this new VendorPay service, which will allow it to reach out to a large number of educational institutions and other organizations by teaming up with Higher One in the U.S. Going ahead, we believe such strategic alliances and joint venture deals should perk up WEX's growth and help maintain its competitive position against arch-rivals such as FleetCor Technologies Inc. ( FLT ) and Total System Services Inc. ( TSS ). Also, its pipeline of international opportunities should help stimulate WEX's above-average growth.

Currently, WEX carries a Zacks #3 Rank, which implies a short-term Hold rating.



FLEETCOR TECH (FLT): Free Stock Analysis Report

TOTAL SYS SVC (TSS): Free Stock Analysis Report

WEX INC (WXS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



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



This article appears in: Investing , Business , Stocks

Referenced Stocks: FLT , TSS , WXS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

110,219,031
  • $6.79 ▲ 14.31%
104,982,008
  • $11.83 ▲ 12.35%
95,065,355
  • $3.40 ▲ 0.59%
79,694,763
  • $36.59 ▲ 2.64%
49,037,292
  • $39.90 ▲ 5.81%
47,069,528
  • $15.34 ▼ 1.03%
43,387,835
  • $6.56 ▼ 1.94%
42,066,487
  • $98.38 ▼ 0.65%
As of 7/29/2014, 04:04 PM