October 1, 2008, SAN FRANCISCO, Calif. - Xoom Corporation, the internet-based global money transfer company, announced today a partnership with Grupo Financiero Banorte (BMV: GF NORTE), one of the oldest and the largest Mexican-owned banks in Mexico. The agreement with Grupo Financiero Banorte, effective today, will provide the beneficiaries of Xoom’s customers more locations and options for receiving money in Mexico. The partnership expands Xoom’s cash disbursement network to include Banorte branch and Uniteller agent locations, and adds bank deposit service directly to any Banorte checking or savings account.
This partnership supports Xoom’s comprehensive corporate initiative to serve the rapidly growing Mexican consumer market by providing an alternative money-transfer option that is fast, easy, convenient and low in price. Xoom’s money transfer service, created in 2001, allows customers to send money to Mexico from any internet-enabled computer using a checking account or credit card to fund the transaction. When paying with a checking account, the cost is $4.99 to send any amount, up to the daily transfer limit of $2,500.
This partnership with Grupo Financiero Banorte augments Xoom’s substantial existing relationships with Mexico’s leading financial institutions, including BBVA Bancomer, HSBC (Bital) and Telecomm/Telegrafos; as well as retail outlets, including Soriana and Famsa stores. In addition, it provides Xoom’s customers with an additional bank for the increasingly popular account-to-account money transfer service.
A study conducted by the Inter-American Dialogue found that Mexican immigrants to the U.S. are increasingly expressing interest in using non-traditional methods for sending money, specifically account-to-account money transfers. According to Manuel Orozco, director of remittances and development at the Inter-American Dialoque, “this represents an important change in the way people prefer to send and receive money. And it is influenced by the fact that more and more Mexican immigrants in the U.S. have bank accounts.”
Orozco noted that this percentage of the population grew from 30% in 2004 to 58% in 2008. Bank account penetration also grew among Mexicans who receive remittances from 33% in 2003 to 48%, according to a study conducted by Bendixen&Associates, a full-service public opinion research group.1
“We now have one of the most robust networks in all of Mexico, a network that includes major banks, stores and the option to deposit directly to a bank account,” said Theresa Pasinosky, senior marketing manager, Latin America, for Xoom. “Xoom offers its customers the convenience of sending remittances via the Internet at any time of day. If the sender sends money at eleven at night, the customer can go to Banorte in the morning and the money will be available.”
Xoom’s new service to Mexico complements immigrants’ growing interest in using the internet to stay connected with their families back home. Market research indicates that Xoom customers sending money to Mexico tend to be well educated and have established roots in the United States.2 This finding is supported by research from the Pew Hispanic Center, which found that 89% of Latinos who go online have a college degree,3 and recent statistics from Mexico’s Ministry of Foreign Relations, showing that more educated and affluent Mexicans are now immigrating to the United States.4
Xoom offers money transfers to 16 countries in Latin America, including Argentina, Bolivia, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Paraguay and Uruguay.
Xoom.com allows individuals to send money from any Internet-enabled computer to family, friends and businesses. Xoom Corporation was founded in 2001 in San Francisco and is backed by leading venture firms Sequoia Capital, New Enterprise Associates and Fidelity Ventures. For more information on Xoom.com money transfer service to Mexico, visit www.xoom.com/mexico.
1Encuesta de Opinión Pública de Receptores de Remesas en México, Bendixen&Associates
2Latino Deep-Xoom Study, 2008
3Pew Hispanic Center Study, 2007
4Mexico’s Ministry of Foreign Relations