WEX Inc. ( WEX ) has inked a long-term care contract with Sinclair Oil Corporation (Sinclair). The 10-year long contract will give WEX the exclusive right to become the fleet card provider for Sinclair's Fleet Track Card program.
Sinclair's Fleet Track Card program comprises 90,000 cardholders spread across 10 states and over 6000 locations. Over the last 10 years, WEX has been providing fleet card services to Sinclair. Hence, the latest contract strengthens ties between the two companies.
Coming to the terms of the latest contract, Sinclair's distributors will be able to provide an enhanced fleet program to customers with the help from WEX. In providing these services, WEX will enhance its customer service, receivables function and online management tools. Thus, the deal will help the company to serve Sinclair efficiently and thus generate a steady stream of revenues.
WEX has been upfront in taking up initiatives to expand its services and reach out to more clients. Last week, the company signed a new contract with one of its allies, Sunoco Inc. to provide co-branded over-the-road (OTR) fuel card services to the latter. The benefits of the OTR card include fraud reduction and fuel savings.
Again, earlier this month, one of the divisions of WEX, namely WEX Fleet One launched a fuel card named All Roads. The special feature of this card is that it combines truck stop and convenience store acceptance capabilities. Both the deals are expected to leverage WEX's customer base and increase its scope to expand to more locations.
Currently, WEX carries a Zacks Rank #3 (Hold). Better-ranked stocks in the financial transaction services space include Heartland Payment Systems, Inc. ( HPY ), Global Payments Inc. ( GPN ) and Fiserv, Inc. ( FISV ). While Heartland Payment sports a Zacks Rank #1 (Strong Buy), Global Payments and Fiserv have a Zacks Rank #2 (Buy).