No Borders, Concludes Agreement with Federation of Co-Operatives in El Salvador

Friday 26 November 2004 11:31 CET | News

No Borders, has executed an agreement with Fedecaces, a Federation of El Salvadorian Co-operatives pursuant to which the Fedecaces branches will deploy the No Borders Stored Value Card and Platform, providing payments of funds remitted from the United States to No Borders cardholders in El Salvador.

The charges for a money transfer will now be lower than the charges previously incurred when U.S. residents sent money to El Salvador to a Fedecaces branch. Fedecaces have 45 locations throughout the entire Republic of El Salvador, with a membership of in excess of 60,000 and with all locations technologically connected via the Internet...For over eleven years Fedecases have provided members with general financial consultation, bank accounts, small business and personal loans, payments of funds remitted from the United States, and other related financial services. The organization is considered the Number One Co-operative in El Salvador, with its membership increasing over the last four years by over 15% annually. No Borders is in the business of providing a debit/stored value card and platform through which a variety of financial and commercial services and products can be offered to residents of developing countries and to immigrants from those countries who reside in the United States and send money back home on a regular basis. No Borders also offers significantly lower cost money transfers and long distance telephone services, with its initial focus on Mexico and El Salvador. According to the Federal Reserve Bank of Dallas, Mexican immigrants in the U.S. sent back to Mexico an estimated $13.3 billion in 2003, and as of March 31, 2004, the numbers increased by 22% when compared to the same three-month period in 2003. The Company believes that it will accelerate its penetration into this growing market, first by reducing the excessive costs currently charged to the consumer, and second by offering a full range of financial and commercial services and products to this emerging transnational market, at significantly lower prices.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce