January 16, 2007, SAN FRANCISCO, CA – Xoom Global Money Transfer®, a leading online money transfer service, today announced the expansion of its network in Latin America and China through Bancomer Transfer Services, Inc (BTS). This new relationship expands Xoom's Latin American network from 2,500 locations in 11 countries to 12,500 in 16 countries and expands their Chinese network to 11,000 locations by March 2007.
Remittances from the United States to Latin America reached more than $53.6 billion in 2005. Alfredo O'Hagan, Xoom VP of Business Development believes it is important to bring convenience and value to immigrants. "We are pleased to work with BTS to expand our global money transfer network, particularly in Latin America and Asia. Now more immigrants and foreign nationals living abroad can rely on us for a reliable and economical way to send money home," said O'Hagan.
The new relationship with BTS adds several key countries to the Xoom Global Money Transfer network, including Colombia, El Salvador, Honduras, Nicaragua, Panama and China. It also provides additional distribution points in Argentina, Bolivia, Brazil, Dominican Republic, Ecuador, Guatemala, Mexico, Peru and Uruguay. Local partners include, among others: Banco Bradesco, Banco Credomatic, Banco Davivienda, Banco de Guayaquil, Banco Mercantil, Banco Uno, Bank of China, BBVA Banco Francés, BBVA Banco Continental, BBVA Bancomer, Telecomm Telégrafos.
Manuel Orozco, the executive director of the Inter-American Dialogue's Remittances and Rural Development Project added, "By establishing remittance transfer partnerships with financial institutions, companies like Xoom are increasing chances of financial access to senders and recipients."
With Xoom WebAgent®, Xoom's newly expanded network is also available to financial services companies who want to build or expand their own remittance services without worrying about the logistical, technical and legal compliance issues associated with money transfer services.
About the Market for Remittance Services
The international money transfer business has been one of the greatest beneficiaries of immigrant population growth. The free movement of people has resulted in $250 billion in remittances in 2005, and this figure is expected to grow 10 percent per year over the foreseeable future. Mexican immigrants alone send approximately $20 billion of their earnings to Mexico annually. The remittance market is very fragmented, however, with the biggest players, Western Union and MoneyGram, accounting for less than 20 percent of the global market.
Xoom Global Money Transfer (www.xoom.com) provides consumers with a reliable, convenient and economical way to send money to friends, family and businesses worldwide. Xoom WebAgent (www.xoomplatform.com) helps banks, credit unions, money transfer operators and card issuers build or expand their money transfer business without worrying about the complex logistical, technical and legal hurdles associated with operating a remittance business. Xoom Corporation was founded in 2001 in San Francisco and is backed by leading venture firms Sequoia Capital, New Enterprise Associates and Fidelity Ventures.
Bancomer Transfer Services, Inc (BTS) is a non-bank subsidiary of BBVA Bancomer and is licensed for money transmission from the United States abroad. Provider of money transfer services since 1995, BTS is headquartered in Houston, Texas and currently provides service to Mexico, the Caribbean, Central&South America, Europe and Asia.