WU Expands Pact with ChinaPay - Analyst Blog
November 14 2012 - 5:10AM
Zacks
Earlier this week, leading money transfer company,
Western Union Co. (WU) 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.
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 in
China.
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 payments.
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 international
payments.
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. (MGI), also currently
retains a Zacks #3 Rank.
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WESTERN UNION (WU): Free Stock Analysis Report
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