ICBA & Travelex Enter $15 B Hispanic International Money Transfer Market.

The Independent Community Bankers of America and Travelex announced today that they have signed a formal agreement to launch a new money transfer service that will enable ICBA’s member banks to provide money transfer and remittance services to their customers and community members through Travelex’s Worldwide Money division.

Travelex’s internet-enabled money transfer service will provide customers with a lower-cost alternative to two of the largest players in the market: Western Union and Moneygram. The service will initially be geared to serving immigrants and workers from Mexico, Central and Latin America who send approximately $15 billion annually to family and friends in their home countries. The service will be launched in the fourth quarter as agent agreements are finalized in Mexico, South America and the United States. ICBA Chairman A. Pierce Stone said: “The Hispanic population in the U.S. continues to grow rapidly and is expanding beyond large metropolitan areas into suburban and rural areas where many community banks are located. This new initiative will help community banks to meet a key financial need of this underserved and important segment of the community. I foresee many community banks expanding on the money transfer relationships to provide other banking products and services.”

Lloyd Dorfman, Travelex Group Chairman and Chief Executive, said: “We are delighted to be expanding our relationship with the ICBA. The agreement we have reached will fulfill the Mexican Government’s stated desire for the provision of a lower-cost alternative for the provision of money transfer services from Western Union and Moneygram and we look forward to working with the ICBA and our local partners to expand our presence in this important market.”