Western Union Collabs With PagaPhone to Grow Cross-Border Money Transfers

Western Union and PagaPhone are collaborating to expand cross-border transfer capabilities between the U.S. and Mexico and enable recipients to receive the funds using their PagaPhone SmartPay account.

“By teaming with Western Union, PagaPhone SmartPay users in Mexico have yet another way to receive money from friends and family cross-border, using a brand known and trusted for decades,” Ulises Tellez, CEO and founder of PagaPhone SmartPay and Cloud Transfer Services, said in a press release Thursday (May 5).

Tellez said that adding Western Union’s money transfer capabilities as an option for customers gives them a “convenient and efficient way to receive money via their PagaPhone account.”

Read more: Typical Cross Border Payment Touches 6 Banks Before Completion

U.S. customers sending money to Mexico can use any Western Union channel including WU.com, the mobile app or any Western Union retail location. Recipients in Mexico can then receive the funds over their phone with their PagaPhone SmartPay account.

Once recipients have the funds in their PagaPhone SmartPay mobile electronic wallets, they can transfer any amount to bank accounts through SPEI. Users can also withdraw cash from any ATM with their PagaPhone debit cards or pay for services directly through the app.

“Remittances are a lifeline for so many in Mexico, where more than USD $51 billion was sent into the country just last year,” said Pablo Porro, head of Western Union Mexico and Central America. “With this surge in remittances, customers demand choice and added convenience for how and when money is sent and received.

“By teaming with PagaPhone, Western Union is helping bridge the digital and physical worlds to offer consumers more channels and added convenience to send money from the U.S. to Mexico.”

Related: Western Union, SuperGIROS Team on Cross-border Payments in Colombia

Consumers regularly receiving remittances can also create an income history, which can help support eligibility for credit or an insurance system.