Western Union Expands Digital Services in United Kingdom
The Western Union Company WU has announced that it is launching high-value digital transfers, which will give customers access to account-to-account money transfer from the U.K. to around the globe. Consumers in the U.K. can send up to £50,000 through smartphones from wu.com or the Western Union mobile application during any time of the day. This launch helped the company to foray into the multibillion-dollar bank.
This is just another milestone for the company in its quest to provide varied money transfer services to customers. The deal would be mainly useful for people, who have assets and holdings in many countries, and who need to send a large amount of money across the border on a regular basis.
Apart from current digital offerings that Western Union provides, it also customized digital account-to-account service from its fast-growing global account payout network.
The company underwent dramatic transformation when it comes to digital offerings, which witnessed continuous double-digit growth. Notably, revenues from the digital platform have been increasing for the past many quarters. The parent company reported global digital revenues of above $400 million in the last year. The momentum even continued in the first six months of 2018, with revenues from digital channel rising 22.5%. The company expanded westernunion.com to 45 markets.
It is also making efforts on boosting its co-branded digital offerings, including its bank agents, which offer money transfer to their online banking services, and ATMs. Currently, Western Union serves more than 150 million consumer-to-consumer and business-to-business customers to send or receive money across more than 200 countries and territories through the web, accounts, apps, mobile wallets etc.
The U.K. market holds ample growth opportunity for the company since the region recorded transaction of more than $26 billion in person-to-person transfers in 2017. This data was provided by the World Bank, which also informed that more than 60% of funds were directed to bank accounts.
Significant progress in the company’s global digital initiatives should drive revenues from this platform.
In the past year, shares of this Zacks Rank #4 (Sell) stock have lost 10.3% against its industry’s growth of 19.9%.
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