Western Union Co. WU has renewed its relationship with Producers Savings Bank Corporation, which is based in the Philippines.
With this deal extension, customers in the Southeast Asian country will continue to gain access to convenient money transfer services by Western Union. Customers will be able to send and receive money to and from their loved ones around the world. Western Union service is currently available at more than 250 Producers Bank retail locations.
Notably, the company already has a strong network of Agent locations in the Philippines through which it has been able to serve customers efficiently. By joining forces with Producers Bank, the company will be able to offer more sites for engaging in money transfer services across the country.
This deal expansion marks Western Unionâ€™s efforts to strengthen its presence in the Philippines, which has been recognised as the fourth-largest remittance recipient country in 2019 according to the World Bank.
Western Union is taking initiatives to capture the vast remittance market of Philippines since an estimated 10 million Filipino workers reside overseas, creating huge demand for money transfer services.
Western Union has been providing money transfer services in the Philippines since 1990 and has more than 12,000 agent hubs in the country. Another money transfer player MoneyGram International Inc. MGI also provides its remittance services in the country. To expand its agent network and reach eventually, Western Union has been making several tie-ups and partnerships with banks, retailers and post offices across the globe. These alliances are in line with the companyâ€™s measures to grow its market share amid the rising competition from many fintech companies.
Recently, Western Union collaborated with CARD Bank, a renowned microfinance-oriented rural bank in the Philippines. CARD Bank, being a member of CARD MRI, offers financial services to support socially and economically-challenged families in the Philippines.
Last month, the company also teamed up with TrueMoney, a reputed financial services provider in the Philippines. This collaboration will enable customers to easily engage in money transfer transactions at more than 5,000 TrueMoney locations across the country.
The stock has gained 9.3 percent in a year compared with the industryâ€™s growth of 10%.
Other companies in the same space, namely Repay Holdings Corporation RPAY and PayPal Holdings, Inc. PYPL have soared 103 percent and 87.7%, respectively.
You can see the complete list of todayâ€™s Zacks #1 Rank (Strong Buy) stocks here.
The stock currently carries a Zacks Rank #3 (Hold).
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