World’s leading money transfer company, Western Union Co. (WU) has launched online money transfer capabilities in Europe. The regions include Austria, Belgium, Germany, the Netherlands and the United Kingdom. Western Union’s customers in this region will now be able to make online and mobile Western UnionMoney Transfer® transactions using their bank accounts.
With this service, senders can customize the remittance to suit the preferences of the recipients. This service has been developed by Western Union with the help of Sofort AG in Austria, Germany, Belgium and the United Kingdom and with iDeal for services in the Netherlands.
In May, the company launched a new website in Nigeria which will facilitate the consumer to send funds to more than 500,000 retail agent locations, into a mobile wallet, or opt to direct the transfer into a recipient’s bank account.
The recent initiatives by the company reflect its continuous emphasis on expanding its digital money transfer platform. The company foresees huge potential in the digital money transfer segment which is in great demand as consumers are increasingly choosing quicker and safer options of transferring money.
Western Union digital comprises wu.com (C2C and C2B) and mobile money transfer; approximately $200 million in revenues in 2013. The company provides digital money transferring service in 24 countries with cash payout in over 200 countries and territories. The company has the facility of bank account payout in 49 countries and mobile money transfer in 17 countries.
The digital platform falls under the company’s Electronic Channel. This segment reported a 27% increase in revenues in the second quarter and contributed 6% of the company’s total revenue.
Western Union is nonetheless facing digital competition as more technology-savvy competitors enter the sector. Player Xoom Corporation (XOOM) has a significant presence in this space. MoneyGram International Inc. (MGI), another money transfer company based in the United States, is also fast developing its digital money transfer business.
Western Union retains a Zacks Rank #3 (Hold). A better-ranked stock Vantiv, Inc. (VNTV) with a Zacks Rank #1 (Strong Buy) is worth considering.
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