Earlier this week, leading money transfer company,
Western Union Co.
) announced the expansion of its existing agreement with ChinaPay
- the online payment subsidiary of China UnionPay. Founded
in 2000, China UnionPay is China's government-backed inter-bank
transfer network and credit card issuer.
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ChinaPay provides online payments, banking, and brokerage
services, as well as offline bill payment and point of service
(POS) terminals. It is the third-largest online payment company
As per the extended agreement, Chinapay will be able to make
tuition fees payment to international universities across the
globe in its local currency Renminbi, with the help of Western
Union. Both the companies will jointly create a simple, fast and
reliable gateway for the international universities as well as
the Chinese population to conduct cross border transaction.
While Chinapay will use its online and mobile payment portals,
Western Union Business Solutions will use its integrated foreign
exchange and payment platforms to create a route, by which the
transactions will be conducted and funds will be instantly
debited from the payers' UnionPay cards at the time of making
Western Union is particularly focusing on expanding in China
since a large population of students from this country goes
abroad for higher studies, creating a huge market for
Western Union has also picked up the industry-leading online
system - ChinaPay - since holds a very good market reputation in
the country and has over hundreds of millions of users.
Western Union has a separate platform - FX Solutions - for
Educational Institutions, which provide the education sector with
state-of-the-art, customized solutions for making and receiving
domestic and international payments. Western Union is already
serving over 400 world-class universities in the U.S., Canada,
the UK, and Australia by processing outbound vendor payments and
inbound student tuition and fees of these institutions.
Western Union currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term 'Underperform' recommendation on its shares. Peer
Moneygram International Inc.
), also currently retains a Zacks #3 Rank.