Tuesday
October 9
2018

Western Union Makes Digital Push Amid Fierce Competition for Money Transfers

By Ezequiel Minaya

Western Union Co. is aggressively expanding its digital services as the money-transfer giant tries to keep pace with competitors vying for international transfers.

At stake in this digital race is a growing share of an industry that each year handles more than half a trillion dollars in remittances, in which money mostly flows from migrant workers to their home countries.

Of the $81.8 billion Western Union consumers transferred in 2017, 91% was sent across international borders. Raj Agrawal, finance chief of the company, estimated that westernunion.com money-transfer revenue—which includes use of the mobile app—last year topped $400 million, or about 11% of consumer revenue.

The digital business has been growing at a roughly 20% annual rate, and this year company executives expect $500 million in digital revenue, he added. “It’s becoming a more meaningful part of our revenue.”

Photo courtesy of AMISOM Public Information.

Source: Wall Street Journal (link opens in a new window)

Categories
Finance
Tags
DFS, digital finance, digital payments, financial services, fintech, mobile money, remittances