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Western Union (WU) Acquires Te Enviei Digital Wallet in Brazil

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The Western Union Company (WU - Free Report) announced the acquisition of the Brazilian digital wallet Te Enviei to expand its footprint in the Latin America market. The acquisition is likely to expedite WU’s efforts to market its financial ecosystem offerings in Brazil. The move builds on the momentum of introducing its digital banking in Europe this February.

The digital wallet is expected to help clients with payments, remittances and storage of funds. The Te Enviei buyout will likely help the company to speed up its planned technology-building process, enabling it to roll out its services faster in the region. Holding a banking license is helping Western Union expand its footprint in the country.

WU expects to launch its products in Brazil in the first half of next year. It will further simplify cross-border payments for its clients. The company is making substantial investments to build a robust digital arm to deliver accelerated and affordable money transfer services. The arm proved to be incredibly beneficial amid the rapidly growing digital economy, as people continue to resort to digital money transfers.

The discontinuation of operations across Russia and Belarus in March 2022 has hurt digital money transfer revenues of the company. Expanding its operations amid rapidly digitizing economies in Latin America will support WU’s long-term growth.

Price Performance

Western Union’s shares have declined 29.5% in the past year compared with a 26.1% fall in the industry it belongs to.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Key Picks

Western Union currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are Marqeta, Inc. (MQ - Free Report) , PaySign, Inc. (PAYS - Free Report) and International Money Express, Inc. (IMXI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Headquartered in Oakland, CA, Marqeta provides card issuing and transaction processing services. The Zacks Consensus Estimate for MQ’s 2022 bottom line indicates 13.3% year-over-year growth.

Based in Henderson, NV, PaySign offers prepaid card products and processing services. The Zacks Consensus Estimate for PAYS’s 2022 earnings indicates 280% year-over-year growth.

Miami, FL-based International Money Express works as a money remittance services company globally. The Zacks Consensus Estimate for IMXI’s 2022 bottom line indicates 18.4% year-over-year growth.

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