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Western Union Coordinates to Grow Global Payments Business

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The Western Union Company (WU - Free Report) has announced collaboration between its U.S. based subsidiary, Western Union Business Solutions (USA), LLC and United Banker’s Bank. The newly launched program — International Business Development Program — lays an emphasis on persuading its financial institution clients to grow their international payments business. This in turn is likely to improve the company’s non-interest incomes, retain their customers as well as attract new ones.

Western Union Business Solutions has been collaborating with various financial institutions, irrespective of their sizes, for improving its parent company’s top line. This has also substantially added to the retention capacity of international payment services. Accounting for 7% of the company’s total revenues, this unit offers a top-class support to the clientele base, driving international business expansion. It provides customers with a competitive edge in the service areas. Per Alfred Carpetto, U.S. regional head of Western Union Business Solutions, the company is a true payments engine for financial institutions.

The above-mentioned program would directly involve Western Union Business Solutions and United Bankers’ Bank to focus on the underpenetrated revenue potential for international payments business. Western Union has always remained focused on investing in technology offering. In fact, its digitally initiated money transfer westernunion.com and Mobile Money Transfer, are the fastest-growing segments of the market, luring in new customers and fetching more business for Western Union. The company has been developing its technology offerings aggressively. It has always tried to keep pace with the technological advancement in the money transfer business and has been making a significant progress in its global digital drives, which will further boost revenues from the technology platform.

Shares of Western Union have gained 7.3% in a year, underperforming the industry’s growth of 35.57%. However, banking on strategic investments in new products, services and technology plus expansion of network should rally the shares going forward.



 

Stocks to Consider

Western Union carries a Zacks Rank #3 (Hold). Some better-ranked companies from the same industry are Cardtronics PLC , Evertec, Inc. (EVTC - Free Report) and Mastercard Incorporated (MA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cardtronics provides automated consumer financial services to its clients. The company pulled off an average four-quarter positive surprise of 27.17%.

Evertec offers transaction processing business to financial institutions, merchants, corporations and government agencies. It came up with a positive earnings surprise of 12.48% over the trailing four quarters.

Mastercard provides transaction processing and other payment-related products and services across the globe. It managed to deliver an average four-quarter beat of 8.89%.

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