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Western Union (WU) Partners to Boost Digital Services in Philippines
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The Western Union Company (WU - Free Report) recently extended its longstanding ties with the leading non-bank financial institution of the Philippines, M Lhuillier, to offer the in-demand digital money transfer services to customers located nationwide.
Prior to the latest partnership, Western Union money transfer services could be availed at M Lhuillier locations numbering more than 2,600 across the country. However, the recent move introduces WU’s digital money transfer services on the mobile app of M Lhuillier mobile app (ML Wallet). The digital app serves as the digital gateway, which allows Filipinos grappling with inadequate access to banks or other financial institutions avail seamless digital facilities.
Presently, customers in the Philippines are merely required to furnish their unique Western Union’s money transfer control number (MTCN) and other identification details into the mobile app for receiving WU money transfers into their respective ML wallets. In the days ahead, ML Wallet users will be equipped to send Western Union money transfers globally via the app.
Initiatives similar to the latest one reflect Western Union’s sincere efforts to bolster its digital services portfolio and pursue a digital partnership strategy for upgrading and digitizing the money movement process for consumers and businesses. WU has always remained committed to broadening its financial services, thereby catering to the evolving needs of consumers and enabling them to conveniently move money globally.
Simultaneously, the expansion of the recent partnership highlights Western Union's efforts to strengthen presence across the Philippines. WU has been keeping a keen eye on the Philippines, which has been identified as one of the leading five remittance receipt countries as stated by the World Bank. The country has been witnessing widespread digital penetration and rising number of Internet users, which provides Western Union the perfect ground to capitalize on either through partnerships or technology investments.
With digital money transfers becoming integral to day-to-day lives and the pandemic-induced volatilities making these transfers the need of the hour, Western Union has intensified focus on using technology for facilitating seamless and secured money transfer services worldwide. The recent extension of partnership with M Lhuillier bears testament to one such effort among several on the part of WU. Another recent initiative undertaken in this regard was its tie-up with Korea’s well-established fintech company Travel Wallet to offer enhanced money transfer services for the Travel Wallet App users in South Korea.
In fact, Western Union has been relentlessly resorting to such initiatives as it has a solid digital arm in place backed by several digital tie-ups and substantial investments. These initiatives have provided a boost to the digital customer base of WU. Digital money transfer revenues of Western Union improved 22% year over year in 2021 and crossed the $1 billion mark.
Similar to Western Union, other companies such as Mastercard Incorporated (MA - Free Report) , Visa Inc. (V - Free Report) and MoneyGram International, Inc. have resorted to creating a solid digital arm for capitalizing on the solid demand for hassle-free money transfer services.
Mastercard has been focused on collaborating with global and regional financial service providers to upgrade the money movement process for consumers and businesses. MA has been resorting to a digital partnership strategy and undertaking significant investments to upgrade its digital capabilities. In December 2021, Mastercard partnered with ProgressSoft to smoothly integrate its cross-border platform into the Middle East and North Africa (MENA) regions’ banks and, consequently, speed up remittances throughout the region.
Visa facilitates the seamless and secure transfer of funds on a real-time basis worldwide. For complementing its endeavor, V pursues collaborations to aid the cross-border payments industry with innovative digital solutions to replace age-old processes. Visa B2B Connect delivers innovative B2B cross-border payments and keeps on adding partners to its network.
MoneyGram has been expanding its digital money transfer business rapidly via constant partnerships and significant investments. MGI has a solid pipeline of new digital partners in place in an effort to bolster the growth prospects of this arm. As a result, MoneyGram anticipates its digital business to account for 50% of all money transfer transactions in 2024.
Shares of Western Union have gained 1.9% year to date against the industry’s decline of 1.7%.
Shares of Mastercard and MoneyGram have gained 0.4% and 36.1%, respectively, on a year-to-date basis. Meanwhile, Visa stock has lost 0.3% in the same time frame.
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Western Union (WU) Partners to Boost Digital Services in Philippines
The Western Union Company (WU - Free Report) recently extended its longstanding ties with the leading non-bank financial institution of the Philippines, M Lhuillier, to offer the in-demand digital money transfer services to customers located nationwide.
Prior to the latest partnership, Western Union money transfer services could be availed at M Lhuillier locations numbering more than 2,600 across the country. However, the recent move introduces WU’s digital money transfer services on the mobile app of M Lhuillier mobile app (ML Wallet). The digital app serves as the digital gateway, which allows Filipinos grappling with inadequate access to banks or other financial institutions avail seamless digital facilities.
Presently, customers in the Philippines are merely required to furnish their unique Western Union’s money transfer control number (MTCN) and other identification details into the mobile app for receiving WU money transfers into their respective ML wallets. In the days ahead, ML Wallet users will be equipped to send Western Union money transfers globally via the app.
Initiatives similar to the latest one reflect Western Union’s sincere efforts to bolster its digital services portfolio and pursue a digital partnership strategy for upgrading and digitizing the money movement process for consumers and businesses. WU has always remained committed to broadening its financial services, thereby catering to the evolving needs of consumers and enabling them to conveniently move money globally.
Simultaneously, the expansion of the recent partnership highlights Western Union's efforts to strengthen presence across the Philippines. WU has been keeping a keen eye on the Philippines, which has been identified as one of the leading five remittance receipt countries as stated by the World Bank. The country has been witnessing widespread digital penetration and rising number of Internet users, which provides Western Union the perfect ground to capitalize on either through partnerships or technology investments.
With digital money transfers becoming integral to day-to-day lives and the pandemic-induced volatilities making these transfers the need of the hour, Western Union has intensified focus on using technology for facilitating seamless and secured money transfer services worldwide. The recent extension of partnership with M Lhuillier bears testament to one such effort among several on the part of WU. Another recent initiative undertaken in this regard was its tie-up with Korea’s well-established fintech company Travel Wallet to offer enhanced money transfer services for the Travel Wallet App users in South Korea.
In fact, Western Union has been relentlessly resorting to such initiatives as it has a solid digital arm in place backed by several digital tie-ups and substantial investments. These initiatives have provided a boost to the digital customer base of WU. Digital money transfer revenues of Western Union improved 22% year over year in 2021 and crossed the $1 billion mark.
Similar to Western Union, other companies such as Mastercard Incorporated (MA - Free Report) , Visa Inc. (V - Free Report) and MoneyGram International, Inc. have resorted to creating a solid digital arm for capitalizing on the solid demand for hassle-free money transfer services.
Mastercard has been focused on collaborating with global and regional financial service providers to upgrade the money movement process for consumers and businesses. MA has been resorting to a digital partnership strategy and undertaking significant investments to upgrade its digital capabilities. In December 2021, Mastercard partnered with ProgressSoft to smoothly integrate its cross-border platform into the Middle East and North Africa (MENA) regions’ banks and, consequently, speed up remittances throughout the region.
Visa facilitates the seamless and secure transfer of funds on a real-time basis worldwide. For complementing its endeavor, V pursues collaborations to aid the cross-border payments industry with innovative digital solutions to replace age-old processes. Visa B2B Connect delivers innovative B2B cross-border payments and keeps on adding partners to its network.
MoneyGram has been expanding its digital money transfer business rapidly via constant partnerships and significant investments. MGI has a solid pipeline of new digital partners in place in an effort to bolster the growth prospects of this arm. As a result, MoneyGram anticipates its digital business to account for 50% of all money transfer transactions in 2024.
Shares of Western Union have gained 1.9% year to date against the industry’s decline of 1.7%.
Image Source: Zacks Investment Research
WU currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Mastercard and MoneyGram have gained 0.4% and 36.1%, respectively, on a year-to-date basis. Meanwhile, Visa stock has lost 0.3% in the same time frame.