Formerly known as Wright Express Corp,
) 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.
Total System Services Inc.
). 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
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WEX INC (WXS): Free Stock Analysis Report
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