The Washington Independent
The Washington Independent
Finance News: Western Union a digital front runner in global payments

Finance News: Western Union a digital front runner in global payments

06/09/2021 09:00
financenews
Sanah Connor

Table of Contents

How Western Union became a digital front runner in global payments

Recent financial data shows Western Union is leading global payments network serving over 150 million customers in over 200 countries worldwide for the last 170 years. The deal just got better for their consumers as the transaction giant introduced westernunion.com, a digital platform that allows clients to make instant payments and transfers across the globe.

How Western Union became a digital front runner in global payments

During the 2019 Investor Day, the company announced its goal to expand real-time payments into wallets, bank accounts, and cards. They added that they would have reached a milestone of 100 countries by 2020.

The company claims that its central purpose has always been to better the experience of customers using their services and make international transfers less stressful for every individual. This goal led to the birth of westernunion.com, a platform that made their dream of seamless transactions come true and caused a magical growth in their revenues during and after the pandemic.

According to the company’s Vice President and CFO, Raj Agrawal, the remittance market is worth $700 billion. He says that half of this revenue lies under the care of banks since most people use these institutions to transfer funds globally.

It believes that they have enough experience to be a branded partner or white label provider to these banks and offer them a turnkey solution for transferring funds across several countries.

As a result, the company partnered with the fintech Saudi Digital Company (stc pay) since millions of migrants living in Saudi Arabia would love to transfer funds worldwide. Again, this strategy paid off their efforts and significantly contributed to their year-over-year growth.

Fortunately, most global consumers now prefer digital services when transferring funds, leading to a double-digit digital development. The revenues they accrued from digital transfers, including income from their digital partnerships commercial and website, have grown to over $850 million in 2020, up from 2019’s over $600 million.

During the first quarter of 2021 (Q1), the company reported a growth of 45% in their year-over-year revenue, which equals over $240 million. Due to the growing returns, Western Union estimates their digital revenue will hit $1 billion during the year.

Agrawal cites that their commitment to quality digital customer experience and good services has paid off and is part of their development reasons. He reports that digital cross-border transactions contributed to 34% of their transfers and 23% of income for their customer-to-customer segment in Q1. He also added that this service was the primary function for the rise of new consumers and increased profits.

Similarly, the 2021 Q1 marked their fourth quarter in a row, for recording transaction increment of 50% and above, with average monthly active user growth hitting 46%. The Western Union app downloads also beat the top four of their competitors at a wide margin of 78%.

Western Union recorded significant growth in customer-to-customer transactions amid the pandemic, led by increased digital money transactions. C2C transactions rose by 9% during the 2021 Q1, while the revenues (including westernunion.com and digital partnerships) increased to 45%.

The company’s digital services receive massive support in several countries, with the five top players being:

  • United States of America
  • United Kingdom
  • Australia
  • France
  • Germany

Western Union is the digital leader and front-runner in all the top countries and is the preferred partner in four out of the five. By now, the company’s virtual services are available in over 100 countries.

Additionally, it has recorded impressive developments on all its digital products and has become a front-runner in virtual money transfers. They are dedicating the remaining part of 2021 towards boosting their consumers’ digital experience. Western Union digital transactions have significantly grown both in terms of revenue and reach. It’s only evident that the future is brighter for the company and its lucrative products.

Sanah Connor | Sanah Connor, a motivational keynote speaker, helps people and organizations improve their communication, interaction, and trust so they can have a greater effect on the world. She coaches her clients with zeal, assisting them in strengthening and elevating their leadership vision to new heights. Sanah knows how to rock a stage, interact with a crowd, and provide training so that others can effectively do the same. She has over ten years of corporate training experience, a talent for making substantive connections with audiences, and an insatiable appetite for helping others optimize their potential.

Related

Choose 888 Casino NJ as your new online gaming getaway

From developing the first racetrack for horses in the United States to one of the first states allowing its citizens to gamble online, New Jersey has always had a pioneering and innovative spirit around the art of gambling. 888casino, like New Jersey, has been at the forefront of the online casino revolution as the first company providing exclusively online gambling to be licensed by any US jurisdiction.

The fundamentals of investment taxation

Many investors are not aware of how taxes are computed. There are some who buy stocks without minding how much they are supposed to pay once they sell their shares at a higher price.

A guide to paying taxes on cryptocurrency investments

Bitcoin transactions of all types are subject to tax, including using Bitcoin purchased from another party to buy goods. In fact, anytime you purchase Bitcoin, including at a cryptocurrency exchange, you are required to pay capital gain taxes on the transaction.

How companies determine dividend payouts

When investors look for stocks, they also ask whether the companies pay dividends or not. If you’re an investor who wants to take a share of the company’s profits, then dividend investing is something you should look into.

How to choose the top places to trade online

More people than ever have started investing their money. This doesn’t just mean traditional investing, where you invest your money with the help of a mutual fund advisor or a stockbroker – more and more investment is being done online, through trading platforms, and online brokers.

Listen and Solve: Knowing ChexSystems and ways to clear your record

Are you planning to open a new bank account or perhaps getting a loan? Opening a new bank account is not for everyone. Banks hesitate to open new accounts for risky clients.

The world's most important stock indices and how to trade on them

Trading is increasing in popularity and more people are showing interest in the stock, forex, and commodities markets. A growing number are keen to invest in foreign markets and indices.

Useful guide for anyone planning an early retirement

Having the opportunity to retire early is the dream of many, but it is also a terrifying prospect. Retiring early is excellent news, but it also requires hard work. If you are confident you have the right skills, knowledge, and attitude for early retirement, you should start building an early retirement plan.

What are issuing banks? How they work, their roles and responsibilities

It is highly likely that those who have Mastercard or Visa, are already at least a bit familiar with an issuing bank. If that’s not the case, then what does it represent? Namely, it is the bank whose name you are able to see on the card.

What is margin safety?

Well, you can use the margin of safety to minimize the risks of losing. This is a concept used by many existing investors and it’s basically a strategy to determine whether a stock is worth buying or not. The margin of safety is determined by the market value of the stock minus its intrinsic worth.

Why you should think first and think hard before getting into a mortgage payment

For many people, a house will be the largest purchase you will make in your life. This is an exciting time in many people’s lives and marks a new stage in life, but the process is not always simple and straightforward.

© Copyright 2021 The Washington Independent All Rights Reserved

Terms & Privacy | twi.news@washingtonindependent.com