Euronet inks Procesa payment processing deal
Euronet Payments & Remittance (“EPR”), a licensed money transmitter and bill payment provider in the U.S. and a subsidiary of Euronet Worldwide (NASDAQ: EEFT), today announced an exclusive processing agreement in the U.S. with Procesa USA, LLC (“Procesa”), the U.S. subsidiary of Grupo Promass/Datalogic, for cross-border mobile airtime top-up and bill pay to Mexico.
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Grupo Promass/Datalogic is the largest bill pay and top-up provider in Mexico.
Under the agreement, EPR will be the exclusive processor for Procesa's cross border top-up and bill pay transactions sent from the U.S. to Mexico. In addition to processing the transactions for other U.S. companies, EPR will offer Procesa's services itself under the Veloz brand. Consumers in the United States will soon be able to make a bill payment or top-up a mobile phone for their family members living in Mexico at a number of Veloz's 1,600 retail locations.
Cross border bill pay allows a person living in the U.S. to pay the bills of a beneficiary in Mexico electronically. Procesa offers bill payment for a majority of public services in Mexico including mortgages, utilities, fixed telephone service and credit cards. With cross border top up, a person living in the U.S. can add minutes to the prepaid phone of a friend or relative in Mexico. The top Mexican cellular carriers; Telefonica, Unefon, Telcel and Iusacell; all have agreements with Procesa for mobile top-up.
"Procesa is the first company to offer such a comprehensive array of cross border payment services. With Euronet, we can assure our customers use of this service in a convenient and safe manner," said Oscar Zepeda, Chairman of Procesa USA. Carlos Obregon, CEO of Procesa USA, added, "EPR has a reputation as a secure and reliable transaction processor. Their technical expertise and strong connections with thousands of retailers across the United States made them a natural choice as a partner for our cross border bill pay and top-up services."
More than $20 billion dollars in remittances were sent to Mexico in 2005 according to the Inter-American Development Bank. The majority of these remittances came from the U.S. Currently these remittances are nearly all person to person transactions. However, some remittance industry experts consider the ability to pay bills across borders a growing trend.
"Cross border bill pay is an exciting new offering for our money transfer customers. Now international remittance senders have more control over what is done with the money they send back home," said Patrick Brown, President of Euronet Payments and Remittance. "Our customers have asked for this option and we believe our payment processing expertise together with the strength of Procesa's product offering and presence in Mexico will offer our customers the service they've requested."