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Western Union (WU) to Offer Services to Advance America
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The Western Union Company (WU - Free Report) recently inked a multi-year deal with Advance America, a leading consumer financial services provider, which will enable Advance America to offer Western Union’s global digital and retail person-to-person (P2P) payments, bill pay and money order services to its customers from mid-2021. Shares of Western Union lost 1.1% on Feb 26, replicating declines in the broader markets.
The agreement will facilitate the integration of Western Union’s platform capabilities with the online portal and retail infrastructure of Advance America.
Backed by its extensive presence, the leading global financial network of Western Union is expected to ease domestic and international money transfers for Advance America’s customers.
While the retail services of Western Union can be availed at 1400 Advance America locations as a result of the latest deal, the same also enables the latter’s customers to transfer funds into over half a million retail locations spanning across more than 200 countries and territories. With regard to domestic money transfers, money can be paid into U.S. bank accounts and received from over 54,000 coast-to-coast Western Union locations in the United States.
The latest agreement reinforces Western Union’s efforts to team up with leading companies for bolstering its digital capabilities, as digitization seems to be the new way of life. With the COVID-19 pandemic resulting in health woes worldwide, the trend of contactless payments came to the forefront as it involves minimum physical contact. Despite the United States remaining reluctant to adopt contactless payments for quite some time, the pandemic made people aware regarding the benefits of no-touch, cost-efficient and time savy digital payments.
Moreover, Western Union has left no stone unturned in pursuing initiatives aimed at offering a streamlined retail customer experience. Case in point, the company inked a deal with the leading worldwide retailer Walmart Inc. (WMT - Free Report) in January 2021 by virtue of which 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. Last year in October, the company extended its 35-year relationship with America’s leading grocery retailer The Kroger Co. (KR - Free Report) . Per the deal, it will continue to fulfil their mutual aim of enhancing digital services and offering seamless retail customer experience.
Given the immense scope of growth prevalent in the global contactless payment market, these initiatives seem to be time opportune. Per Allied Market Research, the global contactless payment market is expected to witness a CAGR of 20.6% over the 2020-2027 period.
It has to be noted that Western Union has been making significant investments in its digital money transfer arm and building a leading omni-channel platform, which yielded results for the company amid the COVID-19 induced turmoil. Despite the company’s revenues witnessing a downtrend in 2020, digital partnerships and constant investments have provided a boost to the company’s digital revenues. Apart from achieving an all-time high for money transfer transactions in 2020, digital money transfer revenue crossed $850 million and climbed 38% during last year from 2019. Based on a robust digital arm, management expects digital revenues for 2021 to reach around $1 billion, thereby, indicating the optimism surrounding the company’s digital business.
Another company, which has made investments to upgrade its digital arm include MoneyGram International Inc. .
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Western Union (WU) to Offer Services to Advance America
The Western Union Company (WU - Free Report) recently inked a multi-year deal with Advance America, a leading consumer financial services provider, which will enable Advance America to offer Western Union’s global digital and retail person-to-person (P2P) payments, bill pay and money order services to its customers from mid-2021. Shares of Western Union lost 1.1% on Feb 26, replicating declines in the broader markets.
The agreement will facilitate the integration of Western Union’s platform capabilities with the online portal and retail infrastructure of Advance America.
Backed by its extensive presence, the leading global financial network of Western Union is expected to ease domestic and international money transfers for Advance America’s customers.
While the retail services of Western Union can be availed at 1400 Advance America locations as a result of the latest deal, the same also enables the latter’s customers to transfer funds into over half a million retail locations spanning across more than 200 countries and territories. With regard to domestic money transfers, money can be paid into U.S. bank accounts and received from over 54,000 coast-to-coast Western Union locations in the United States.
Shares of this Zacks Rank #3 (Hold) company have gained 3.6% in a year compared with the industry’s growth of 13.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The latest agreement reinforces Western Union’s efforts to team up with leading companies for bolstering its digital capabilities, as digitization seems to be the new way of life. With the COVID-19 pandemic resulting in health woes worldwide, the trend of contactless payments came to the forefront as it involves minimum physical contact. Despite the United States remaining reluctant to adopt contactless payments for quite some time, the pandemic made people aware regarding the benefits of no-touch, cost-efficient and time savy digital payments.
Moreover, Western Union has left no stone unturned in pursuing initiatives aimed at offering a streamlined retail customer experience. Case in point, the company inked a deal with the leading worldwide retailer Walmart Inc. (WMT - Free Report) in January 2021 by virtue of which 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. Last year in October, the company extended its 35-year relationship with America’s leading grocery retailer The Kroger Co. (KR - Free Report) . Per the deal, it will continue to fulfil their mutual aim of enhancing digital services and offering seamless retail customer experience.
Given the immense scope of growth prevalent in the global contactless payment market, these initiatives seem to be time opportune. Per Allied Market Research, the global contactless payment market is expected to witness a CAGR of 20.6% over the 2020-2027 period.
It has to be noted that Western Union has been making significant investments in its digital money transfer arm and building a leading omni-channel platform, which yielded results for the company amid the COVID-19 induced turmoil. Despite the company’s revenues witnessing a downtrend in 2020, digital partnerships and constant investments have provided a boost to the company’s digital revenues. Apart from achieving an all-time high for money transfer transactions in 2020, digital money transfer revenue crossed $850 million and climbed 38% during last year from 2019. Based on a robust digital arm, management expects digital revenues for 2021 to reach around $1 billion, thereby, indicating the optimism surrounding the company’s digital business.
Another company, which has made investments to upgrade its digital arm include MoneyGram International Inc. .
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
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