In an effort to better serve the Indian community living in U.S and U.K., Western Union Co. (WU) has tied up with India’s Kotak Mahindra Bank. This agreement will enable the Indians living in these countries to remit money direct into their bank accounts in India.
The service is very user-friendly since it requires going online and using the company’s website to make the transaction. Consumers in U.S. get an additional facility of transferring money by using their smartphone application. They can also avail the service by visiting any of Western Union’s numerous agency locations.
Customers also get flexible timing for transactions undertaken beyond the scheduled banking hours. The service is in operation and will be provided via 500 retail locations across India. It is planned that the number of locations providing the service will gradually increase.
Western Union has been very careful in choosing Kotak Mahindra Bank since it is among one of the major bank private banks in India which has a significant presence and is also expanding. It also has a strong brand name and is known for its efficient service.
Mid-last month, Western Union partnered with IndusInd Bank Ltd. to provide its money transfer service to the Indian Small and Medium Enterprises. Western Union views India as a market with long-term growth opportunity. The increasing population of Indian immigrants to developed western countries is expected to fuel long-term demand for remittance. Apart from India, Western Union has a presence in other countries in Europe, Middle East, among others.
Another company MoneyGram International Inc. (MGI) also provides services in India in partnership with Axis Bank, State Bank of India, among others.
Western Union retains a Zacks Rank #4 (Sell). Other players – Visa Inc. (V) and Outerwall Inc. (OUTR), both with Zacks Rank #2 (Buy) -- are worth considering.