The Western Union Company ( WU Quick Quote WU - Free Report) recently inked a deal with the leading worldwide retailer Walmart Inc. ( WMT Quick Quote WMT - Free Report) . The deal enables Walmart customers to avail the money transfer services of Western Union including domestic and international money transfers, bill payments and money orders for sending money globally.
The abovementioned services will be available at over 4,700 Walmart locations across the United States, starting spring 2021. With Western Union’s services that are spread over more than 200 countries and territories, Walmart customers will have option of money transfer on a real-time basis either across Western Union’s retail locations exceeding 550,000 or into billions of bank accounts, wallets or cards.
The latest deal seems to be a win-win situation for both the companies. In fact, both the companies have been striving hard to help customers in sending money for facilitating faster and hassle-free daily essential purchases.
On one hand, the latest deal empowers Western Union to expand its money movement and payment service capabilities, which in turn, is likely to bolster its U.S. and worldwide customers. On the other hand, the global money movement platform of Western Union will help Walmart in catering to needs of its customers more effectively. As a matter of fact, Walmart has built a marketplace through which it has been offering enhanced financial services at affordable costs to customers for over 20 years. Through these services, the company’s customers as a matter of fact have saved over $1.5 billion from 2014.
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The company’s latest move seems to be time opportune as the COVID-19 pandemic has highlighted the importance of moving funds across borders on a real-time basis, which not only takes less time but also reduces costs compared to when companies would operate their stores at remittance locations.
Moreover, Western Union has been making substantial investments to upgrade its digital money transfer platform following a period of constant strain on its revenues. A strong digital arm has somewhat helped the company to navigate the ongoing operational challenges stemming from the pandemic. Case in point, the company decided to buy 15% ownership in Saudi Digital Payments Company or stc pay in November 2020 in order to expedite digital growth. Last year, the payment processor also attained its goal of extending real-time payout to bank accounts, wallets and cards to 100 countries.
Furthermore, Western Union has collaborated with several financial institutions worldwide to manage international payments better. Prior to the latest move, the company extended its 35-year relationship with Kroger in October 2020 in a bid to benefit the latter’s customers with expanded domestic and international payment services.
With digitization reshaping the remittance industry in the way funds are being moved across borders on a real-time basis, the company’s efforts to boost its real-time capabilities through constant investments and digital tie-ups are likely to position it well for long-term growth. Other companies which have made investments to upgrade its digital arm include
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