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Western Union, Thunes Tie Up to Boost Digital Money Transfer

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Western Union Co. (WU - Free Report) has collaborated with Thunes, a cross-border payments network for evolving markets, to enable its customers to send money directly into mobile wallets across the globe.

With this deal, senders can now make the most of Western Union’s emerging digital network. Alternatively, they can use an agent location to transfer funds straightaway to a recipient’s mobile wallet. Consumers who lack access to age-old financial services would be able to enjoy an enhanced financial access. This will drive advanced financial inclusion worldwide.

The aforementioned partnership is just another strategic move by the company to add to its account payout portfolio. Western Union has been constantly focusing on providing customers with a wide array of payout options consisting of banks, cards and mobile wallets, thereby boosting mobile transactions.

Notably, Thunes’ payment platform connects payment providers worldwide and allows interoperability amid diverse payment systems, which in turn, would be highly beneficial to Western Union clients.

The company’s digitally initiated money transfer, which includes westernunion.com and Mobile Money Transfer, is the fastest-growing segment in the market that is winning customers and fetching a brisk business to Western Union. This facility is available in more than 60 countries and other territories to move money all around the world. Last year, the company transferred more than $300 billion principal in nearly 130 currencies.

Revenues from the company’s digital platform have been increasing for the last many quarters. The company’s digital business maintained its impressive run with 22% revenue growth in 2018.

Western Union also has many other digital opportunities in progress. The company recently opened its unique global money movement platform to new partners. Further, it collaborated with Amazon for the use of its network regarding online purchases. The company also launched its mobile app in Singapore. A significant progress in its global digital initiatives should further generate revenues from this platform.

Shares of this Zacks Rank #4 (Sell) company have lost nearly 7.9% in a year’s time against its industry’s growth of 15.8%.


Stocks to Consider

Investors interested in the finance sector can look into some better-ranked stocks like Virtu Financial, Inc. (VIRT - Free Report) , Fidelity National Information Services, Inc. (FIS - Free Report) and Euronet Worldwide, Inc. (EEFT - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

Virtu Financial provides market making and liquidity services to the financial markets around the globe. The company carries a Zacks Rank #2 (Buy) and came up with average trailing four-quarter positive surprise of 0.63%.

Fidelity National Information works as a financial services technology company worldwide. It sports a Zacks Rank #1 (Strong Buy). The company managed to deliver positive results in all the trailing four quarters, the average being 2.72%.

Euronet provides payment and transaction processing and distribution solutions worldwide. It has a Zacks Rank of 2. The stock pulled off average four-quarter beat of 2.68%.

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