Western Union Co. WU has entered into a tie-up with Drive Wealth a provider of easy-to-use U.S. equities investing platform to individuals worldwide. The partnership will enable individual investors to transfer money via a range of currencies on offer to their Drive Wealth U.S. investment accounts from their domestic or international bank accounts.
This service will speed up a transaction since it can be done at the touch of a button using electronic transfer.
Western Union Business Solutions’ bank transfer service can be used by individual investors to transfer the funds. The currency chosen for the transfer will be converted into equivalent U.S. dollars, making it all the more easier for the investor.
This service by Western Union also addresses investors’ need to take advantage of attractive investment opportunities by enabling them to trade instantly. It will also make the U.S. stock markets more reachable for individuals across the globe.
Western Union senses an attractive business opportunity with Drive Wealth, since the latter provides a platform that will attract numerous willing international investors, who found the U.S stock market inaccessible so long. Western Union sees huge pent up demand from investors in emerging markets, looking to diversify their portfolio by investing in the U.S. stock markets. This deal should be accretive to the company’s revenues derived from the currency exchange business.
Western Union carries a Zacks Rank #3 (Hold). Some better-ranked stocks in this space are Total System Services, Inc. TSS, Alliance Data Systems Corporation ADS and Global Payments Inc. GPN. Each of these stocks carries a Zacks Rank #2 (Buy).
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