In an effort to better serve the small and medium enterprises of India, Western Union Co. (WU) has partnered with IndusInd Bank Ltd.
Per the agreement Western Union will provide its money transfer service to the SMEs.
Western Union has been particularly attracted towards the Indian market because of its large SME population which currently stands at 30 million. The number of SMEs is expected to grow going forward, fueling increased demand for money transfer services.
IndusInd Bank has also hired two of Western Union’s largest agents, Weizmann Forex Ltd and Paul Merchants Ltd, as referral agents, which will help the bank to develop the money transfer services in India.
IndusInd bank will provide facilities at certain branches of Weizmann Forex Ltd and Paul Merchants Ltd. in 22 cities across the country.
IndusInd Bank will also ensure money transfer service at the homes of the customers. When requested by customers, agents from Weizmann Forex Ltd and Paul Merchants Ltd will visit the homes or offices of customers to assist them.
Apart from home services, other benefits include a wide array of currencies to choose from to make international transactions, efficient and quick processing of transactions, automatic notification via email and transparent pricing and increased payment visibility.
Western Union views India as a market with long term growth opportunity. The increasing population of Indian immigrants is expected to fuel long term demand for remittance, thus increasing the company's business frm the region . Apart from India, Western Union has a presence in other countries in Europe, Middle East etc.
Another company MoneyGram International Inc. (MGI) also provides services in India.
Western Union retains a Zacks Rank #3 (Hold). Other players – Visa Inc. (V), Weight Watchers International, Inc. (WTW) both with Zacks Rank #2 (Buy) are worth considering.