SAN FRANCISCO, CA – May 6, 2010 – Following explosive growth of almost 200% in its online money transfers to Mexico over the past year1, Xoom.com, a leading internet-based global money transfer company, today announced that Xoom.com services can be used to send money to the Banamex Network in Mexico. The new partnership enables Xoom.com to offer its users more options to receive their money and to meet the growing consumer demand for online money transfers to Mexico. The Red Banamex Network offers the recipients of Xoom.com’s money transfers more than 4,000 additional pick-up locations throughout Mexico and gives consumers in the U.S. the ability to make deposits directly into any Banamex checking or savings account, for access to funds within minutes.
Despite a significant decline in the overall remittance industry over the past year, Xoom.com’s online money transfers to Mexico continue to grow. For the month of February 2010 alone, online remittances to Mexico via Xoom.com grew by 112 percent over February 2009.2 By contrast, overall remittances decreased by 14 percent during the same period.3 A recent survey of 427 Xoom.com customers who send money to Mexico regularly, points to continued growth in the coming year. Ninety percent of consumers polled plan to send the same or a greater amount in 2010 compared with 2009 explaining that the service is easier to use than traditional remittance methods, and also saves them time and money.4
“Today, Xoom.com has taken another major step to meet the rapidly-increasing demand for our online remittance services, and deliver the highest quality customer experience,” said Theresa Pasinosky, Xoom.com’s Marketing Director for Latin America. “The Red Banamex Network provides our customers with safe, easy and reliable online money transfer solutions, seven days a week, either directly to an account, or available for pick-up at one of the largest, most reputable banks in Mexico.”
“We are pleased to see interest from major international financial institutions, as market demand for alternative methods of money transfers continues to grow,” added Eugenio Nigro, Vice-President of Business Development, Latin America.
It is estimated that the 12 million Mexicans living in the U.S. send approximately $21 billion a year to their homeland.5 This new service expands Xoom.com’s comprehensive corporate initiative to serve this country’s rapidly-growing Mexican consumer market by providing an alternative money transfer option that is fast, easy, convenient and inexpensive. Xoom.com’s money transfer service allows U.S.-based customers to send money to Mexico from any internet-enabled computer using a checking account or credit card to fund the transaction. The cost to send money with Xoom.com via checking account – up to a daily limit of $2,999 – is just $4.99.
Pasinosky believes that growth in online money transfers to Mexico will continue to be robust, citing recent research showing internet usage among U.S. Latinos outpacing the growth rate in the general market – more than 58 percent of Latinos are now online savvy.6 “It is only natural that more U.S. Latinos will embrace Xoom.com as they get online.”
“Banamex, a pioneer in the money transfer service to Mexico, is always on the forefront of new technologies to better serve our clients,” said Salvador Villar, Chairman and CEO of Banamex USA.
“We understand the dynamics of the money transfer industry as well as the needs of our customers. That is why in addition to our extensive network of Banamex branches we pay transfers through thousands of non-bank locations that make up the Banamex Aquí Network. Red Banamex covers practically every town in Mexico, offers service seven days a week and extended service hours (in some cases even 24 hours a day) to respond to the needs of today’s market and help us meet our commitment to provide money transfer solutions to customers,” added Villar.
The Red Banamex Network is the latest addition to Xoom.com’s growing base of top Mexican networks. Banamex offers the largest network of payout locations among Mexican banks, with many open seven days a week and evenings through Farmacias Guadalajara, Comercial Mexicana, Casa Ley and other retail locations throughout Mexico.
Xoom.com, a service of Xoom Corporation, enables individuals to send money to family and friends from any Internet-enabled computer. Xoom Corporation was founded in 2001 in San Francisco and is backed by leading venture firms Sequoia Capital, New Enterprise Associates, SVB Capital and Volition Capital (fka Fidelity Ventures). For more information on Xoom.com’s money transfer service to Mexico, visit: www.xoom.com.com/mexico
1 Xoom Research 2010
2 Xoom Research 2010
2 Secretaría de Gobernación. Gobierno de Mexico 2009.
3 Xoom Research 2010
4 Banco de Mexico Central 2010
5 Secretaría de Gobernación. Gobierno de Mexico 2009.
6 AOL Hispanic Cyberstudy 2010