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Western Union (WU) Unit Ties Up to Ease B2B Payments in Japan
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The Western Union Company (WU - Free Report) recently announced that the services of its arm — Western Union Business Solutions — will be used by the Japanese money transfer company, KYODAI Remittance.
The partnership will pave the way for KYODAI Remittance to utilize the WU GlobalPay for Financial Institutions platform. This, in turn, will benefit corporate customers of KYODAI Remittance’s founder Unidos. The customers can now successfully engage in business to business (B2B) cross-border payments via direct and secured payment routes, and nominal fees across one of the world’s extensive payment networks.
Western Union and KYODAI Remittance share a strong bond owing to their common goal of expanding enhanced services for seamless and trustworthy cross-border money transfers globally. Prior to the latest move, KYODAI Remittance had been offering customer-to-customer (C2C) cross-border payments through Western Union for more than two years now. However, an amendment made to the Payment Services Act of Japan as on May 1, 2021 compelled KYODAI Remittance to provide B2B cross-border payment services in addition to the previously offered services.
The latest move highlights Western Union’s sincere efforts to seamlessly manage B2B international payments globally. The collaboration is a remarkable one since it marks the first instance of Western Union Business Solutions joining forces with a money transfer company of Japan to facilitate B2B international payments.
Initiatives similar to the latest one seem to be time opportune owing to the evolving landscape of the global B2B payments space. B2B transfers, which can be executed rapidly and at lower costs, are a boon for organizations. The companies can make use of advanced technologies for conducting these transfers, which reduces operational costs, eliminates regulatory barriers and thus, results in higher client retention rates.
The latest move also highlights Western Union’s efforts to expand its presence in Japan. The country seems to be an attractive market for Western Union, given the widespread digital penetration and rising number of mobile users, which have been swaying people toward using digital transfer networks. A report published in Statista stated that the transaction value of the country’s Digital Remittances segment is anticipated to witness a CAGR of 8% over the 2021-2025 period.
Western Union Business Solutions has rolled out solutions to enhance management of international payments quite often on the back of the company's expansive worldwide network spanning across 200 countries and territories. To complement this endeavor, it has been pursuing collaborations with several global financial service providers. These initiatives have bolstered its digital capabilities, and strengthened its global network and presence.
To foray further into the global cross-border consumer payments market and enhance its total addressable market, Western Union inked a deal with Goldfinch Partners and The Baupost Group last month to sell its Business Solutions segment. Sale proceeds received from the divestiture are likely to be utilized for undertaking growth-related initiatives.
Western Union continues to rely on massive investments and digital partnerships for reinforcing its position as an innovative cross-border payment solutions provider for its partners.
Zacks Rank & Price Performance
Shares of Western Union, which carries a Zacks Rank #3 (Hold), have lost 1% year to date compared with the industry’s decline of 12.8%.
Image: Bigstock
Western Union (WU) Unit Ties Up to Ease B2B Payments in Japan
The Western Union Company (WU - Free Report) recently announced that the services of its arm — Western Union Business Solutions — will be used by the Japanese money transfer company, KYODAI Remittance.
The partnership will pave the way for KYODAI Remittance to utilize the WU GlobalPay for Financial Institutions platform. This, in turn, will benefit corporate customers of KYODAI Remittance’s founder Unidos. The customers can now successfully engage in business to business (B2B) cross-border payments via direct and secured payment routes, and nominal fees across one of the world’s extensive payment networks.
Western Union and KYODAI Remittance share a strong bond owing to their common goal of expanding enhanced services for seamless and trustworthy cross-border money transfers globally. Prior to the latest move, KYODAI Remittance had been offering customer-to-customer (C2C) cross-border payments through Western Union for more than two years now. However, an amendment made to the Payment Services Act of Japan as on May 1, 2021 compelled KYODAI Remittance to provide B2B cross-border payment services in addition to the previously offered services.
The latest move highlights Western Union’s sincere efforts to seamlessly manage B2B international payments globally. The collaboration is a remarkable one since it marks the first instance of Western Union Business Solutions joining forces with a money transfer company of Japan to facilitate B2B international payments.
Initiatives similar to the latest one seem to be time opportune owing to the evolving landscape of the global B2B payments space. B2B transfers, which can be executed rapidly and at lower costs, are a boon for organizations. The companies can make use of advanced technologies for conducting these transfers, which reduces operational costs, eliminates regulatory barriers and thus, results in higher client retention rates.
The latest move also highlights Western Union’s efforts to expand its presence in Japan. The country seems to be an attractive market for Western Union, given the widespread digital penetration and rising number of mobile users, which have been swaying people toward using digital transfer networks. A report published in Statista stated that the transaction value of the country’s Digital Remittances segment is anticipated to witness a CAGR of 8% over the 2021-2025 period.
Western Union Business Solutions has rolled out solutions to enhance management of international payments quite often on the back of the company's expansive worldwide network spanning across 200 countries and territories. To complement this endeavor, it has been pursuing collaborations with several global financial service providers. These initiatives have bolstered its digital capabilities, and strengthened its global network and presence.
To foray further into the global cross-border consumer payments market and enhance its total addressable market, Western Union inked a deal with Goldfinch Partners and The Baupost Group last month to sell its Business Solutions segment. Sale proceeds received from the divestiture are likely to be utilized for undertaking growth-related initiatives.
Western Union continues to rely on massive investments and digital partnerships for reinforcing its position as an innovative cross-border payment solutions provider for its partners.
Zacks Rank & Price Performance
Shares of Western Union, which carries a Zacks Rank #3 (Hold), have lost 1% year to date compared with the industry’s decline of 12.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the financial transaction services space include EVERTEC, Inc. (EVTC - Free Report) , Green Dot Corporation (GDOT - Free Report) and Equifax Inc. (EFX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EVERTEC, Green Dot and Equifax have a trailing four-quarter earnings surprise of 28.42%, 64.53% and 17.71%, on average, respectively.