The Western Union Company (WU - Free Report) collaborates with Post Bank, one of Russia’s largest banks, for expanding its offering of digital international money transfers. With this partnership, customers would be allowed to use Post Bank’s mobile banking application to send Western Union Money Transfers into billions of bank accounts in above 50 countries.
However, Post Bank customers still have a choice to pay their receivers in cash across more than 200 countries and territories. Western Union would be able to connect with more people across different geographies with this tie-up. Moreover, senders would now have more feasible options at their disposal when it comes to money transactions and transfers. They can directly put the money into bank accounts with just a few clicks or send through cash at Western Union retail agent locations.
Per Ken Research, the Russia International Remittance Market is expected to grow with a projected increase in the remittance flows to $68 billion by 2021. The bill payment market is also forecast to exhibit double digit growth rate in the future. Thus, the Western Union is interested to expand in the Russian market.
The company is not a new player in Russia. Back in 2015, it collaborated with Yandex.Money, a leading online payment service in Russia with an objective of enabling 222 million Yndex.Money users to send money overseas.
Digital money transfer, which includes westernunion.com and Mobile Money Transfer, is the fastest growing segment, attracting new customers and providing business growth for Western Union. Revenues from the company’s digital platform have registered a consistent rise over the past several quarters. The company gives digital expansion a priority and such initiatives would most likely drive revenues further from this platform. The company also lends significant importance to fortifying its international footprint.
The company has burgeoned in scale with 200,000 locations across China, India and the rest of Asia-Pacific. Good news is that it has doubled its network in Mexico too.
In the past year, shares of this Zacks Rank #3 (Hold) stock have risen 8.85%, underperforming its industry’s growth of 39.17%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Investors interested in the financial transaction services sector can look into some better-ranked stocks like WEX Inc. (WEX - Free Report) , Mastercard Incorporated (MA - Free Report) and Cardtronics plc (CATM - Free Report) .
WEX provides corporate card payment solutions in North and South America, the Asia Pacific and Europe. The company managed to deliver a trailing four-quarter earnings surprise of 2.56%.
Mastercard offers transaction processing and other payment-related products and services in the United States and globally. The company pulled off an average three of four-quarter positive surprise of 8.89%.
Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. It came up with an average four-quarter beat of 27.17%.
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