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Western Union Introduces Online Money Transfer in Malaysia

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The Western Union Company (WU - Free Report) recently launched online money transfers in Malaysia, which can be operated through the Western Union mobile app and With this introduction, clients living in the region can send money round the clock to almost everywhere worldwide.

Western Union’s advanced digital services in Malaysia will enable clients to directly transfer money to Western Union’s retail network, consisting of more than half a million agent locations across nearly 200 countries and territories. The money can directly be sent to billions of bank accounts globally. Thus, customers can enjoy fast, convenient and reliable transactions with this latest facility and are allowed to send RM3,000 per day online from their local internet banking accounts with FPX (Financial Process Exchange) participating banks.

Malaysia has high smartphone penetration, which remains attractive for money transfer players. Per a study, digital transformation will add around $10 billion to Malaysia’s Gross Domestic Product and the growth rate will inch up by 0.6% annually, which again holds ample opportunity for money transfer players.

Western Union’s network includes 550,000 retail agent locations offering Western Union, Vigo or Orlandi Valuta branded services in above 200 countries and territories. The company has expanded its segment to 50 countries and territories. Being one of the fastest growing markets, it steadily contributes a lion’s share to the company’s overall revenues.

With multiple digital initiatives in progress, the company also collaborated with Amazon in the past to let use its network for online purchases. This month, it tied up with HKT Payment Limited for allowing Hong Kong-based Tap & Go customers to use Tap & Go mobile wallet to send funds across the globe. In October 2018, the company announced its launch of high-value digital transfers, which will provide customers with access to account-to-account money transfer facility from the U.K. to worldwide.

The company has burgeoned in scale with 200,000 locations across China, India and the rest of Asia-Pacific. Revenues from the company’s digital platform registered a consistent rise over the last several quarters.

Another player  in the same space, MoneyGram International, Inc. (MGI - Free Report) , has also made constant investments in boosting digital capabilities. For players in the money remittance industry, ramping up the digital payments segment is extremely important as they can expand their service portfolios and increase revenues through international expansion. This is the right time for such investments as more and more people are relying on digital transfers for their day-to-day affairs.

Shares of this Zacks Rank #3 (Hold) company have lost 5.9% in a year’s time against the industry’s rise of 10%.

Stocks to Consider

Some better-ranked stocks from the same space are Green Dot Corporation (GDOT - Free Report) and Envestnet, Inc.(ENV - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Green Dot operates as a pro-consumer bank holding company that provides personal banking for the masses. The company managed to deliver average trailing four-quarter positive surprise of 18.40%.

Envestnet provides intelligent systems for wealth management and financial wellness in the United States and around the globe. It came up with average four-quarter earnings surprise of 5.54%.

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