Back to top

Analyst Blog

In an effort to expand its mobile money transfer service, Western Union Co. (WU - Analyst Report) has announced a strategic agreement with, Ericsson (ERIC - Analyst Report). Per the agreement the company has certified Ericsson Wallet Platform via which customers using their mobile phones can transfer money through their phones.

Both the companies will complement each other in the capability, given a strong brand image enjoyed by them in their respective markets.

The company is aggressively embracing the use of new age technology for providing flawless service to its customers. Mobile payments are gaining momentum due to convenience and round-the-clock accessibility. This service is expected to witness faster adoption rate than any other electronic channel. The company has already in operation its mobile money transfer service in many of the regions of the world such as Afghanistan, Bangladesh, El Salvador, Guatemala, Indonesia, Kenya, Madagascar, Malaysia, Paraguay, the Philippines, Tanzania, Uganda, Vietnam, and the U.S.

We believe that Western Union’s participation in electronic channels like prepaid, mobile, and internet will boost its near-term earnings which should help offset pressures on its traditional paper-based product offerings.  

Of late Western Union had a rough patch with regulatory compliance issues due to which it had to cancel its agents in the Mexican region. The company also suffered revenue loss on account of these negative developments.

Western Union is trying to offset these pressures by developing and expanding additional new age services in the form of prepaid, online money transfer, bank to bank direct transfer etc.

Earlier during the month Moneygram International Inc. (MGI - Analyst Report), another company in the money transfer industry announced its mobile money transfer facility to the users of iPhone, Android or Windows 8 mobile devices in the U.S.

Among player in the financial services industry – H&R Block, Inc. (HRB - Analyst Report) with Zacks Rank #2 (Buy) is worth considering.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%