The Western Union CompanyWU has entered into a collaboration agreement with JD Digits to enhance digital cross-border money movement and payments for international consumers and business houses in China. The combination of online and mobile fintech services will enable customers to enjoy fast and feasible cross-border remittances and payments.
In the initial phase, the companies will mainly work on moving transactions across the globe into mobile wallets and bank accounts of 400 million JD Digits customers.
The cross-border remittances market in China has ample opportunities as the world's second largest money receiving country. Per World Bank, China received around $63.8 billion and sent $2.8 billion in 2017.
Western Union is really looking forward to this deal, which would help enhance money transfer in one of the largest economies. Consumers would be able to enjoy a new-age money transfer facility with the aid of leading fintech services. JD digits is the ideal partner to commence this service as it is one of the best innovative digital technology companies in China.
Western Union has made concerted efforts to drive its money transfer platform. The company has also announced its tie-up with TerraPay to facilitate mobile wallet and bank account payout. It has also teamed up with Amazon, allowing international customers to personally pay in local currencies for their Amazon purchases. It is also powering Kenya-based Safaricom wallet holders to move cash from their mobile wallets to all across the globe.
In 2017, the company processed around 32 transactions every second and transferred $300 billion in 130 currencies.
Digitally initiated money transfer, which includes westernunion.com and Mobile Money Transfer, is the fastest-growing segment in the market, drawing customers and ramping up business for Western Union. Revenues from the company's digital platform have been increasing for the past many quarters.
The company has expanded westernunion.com to 50 countries and territories. Also, it has many other digital opportunities in progress. Recently, the company undertook business transformation program called WU Way, which aims to boost operational efficiencies through digitization. Significant improvement in its global digital plans should further generate revenues from this platform.
Shares of this Zacks Rank #2 (Buy) have lost 7.1% in a year's time against its industry 's growth of 11.6%.
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