A recent survey made by the money transfer company,
Western Union Co.
) found out there has been a increased use of mobile, online,
credit card and debit card to make their monthly
The study found that while people continue to use in-person
and mail services to make their payments the above mentioned
technical methods are fast gaining acceptance. The
popularity of these tech friendly ways of making payments is
driven by their accuracy, speed, location advantage as well as
24X7 service availability.
The global payments industry has evolved with technological
innovations that have created new methods of processing payments
from consumers to businesses. The United States is in the midst
of a trend away from cash and paper checks for bill payments
toward electronic payment methods accessible through multiple
Western Union, one of the leading money transfer companies
around the globe, is increasing its investments in high-growth
electronic channels to build a world-class customer experience.
These efforts are paying off in rapid growth in digital, account
based money transfer, and mobile. Online, westernunion.com money
transfer transactions grew more than 40% in 2012, while
transactions for electronic account based money transfer through
banks surged more than 50%.
During the second quarter, the company's digital business
witnessed a good growth. Its online channel, Westernunion.com
again delivered strong results, with Money Transfer transaction
growth of 68% and a revenue increase of 25% in the quarter.
U.S.-originated online transactions increased over 75% in the
Total electronic channel revenue, which includes
westernunion.com, account-based money transfer through banks, and
mobile, increased 26% in the quarter. Electronic channels
represented 4% of total company revenue, up from 3% of revenue in
the year-ago period.
In addition to the strong growth from westernunion.com,
transactions from account-based money transfer through banks
increased 51%. Prepaid revenue, including third-party reload,
declined 9% in the quarter, primarily due to softness in our U.S.
Management is targeting $500 million of revenues from the
digital business (westernunion.com/mobile) by 2015, which implies
a 60% CAGR revenue through 2015.
Western Union currently retains a Zacks Rank #3 (Hold).
Other players providing online money transfer facility are
MoneyGram International Inc.
) among others.
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WESTERN UNION (WU): Free Stock Analysis
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