World's leading money transfer company, Western Union Co. ( WU ) has initiated its online service - www.WesternUnion.ng - in Nigeria with the debut of its online site.
This is Western Union's first inward-remittance website across the globe. The service was launched with support from Interswitch Limited.
The website will enable Nigerians to move funds into a bank account with Guaranty Trust Bank, Skye Bank, Stanbic IBTC Bank and Wema Bank.
Western Union already has a significant presence in Nigeria and provides mobile money remittance service in the region via eTranzact.
Western Union perceives Nigeria as an attractive market opportunity since the country topped the list of African countries for diaspora remittances due to the huge remittance it receives. As per data from World Bank, Nigeria received $21 billion in funds last year. Going forward, this region is expected to witness further growth in remittance.
Western Union is increasing its investments in high-growth electronic channels to build a world-class customer experience. These efforts are propelling rapid growth in digital, account-based money transfer, and mobile banking. Online, westernunion.com money transfer transactions grew more than 40% in 2013, while transactions for electronic account-based money transfer through banks surged over 50%.
Management is targeting $500 million in revenues from the digital business (westernunion.com/mobile) by 2015, which implies a 60% CAGR revenue growth through 2015.
Another money transfer company MoneyGram International Inc. ( MGI ) also provides services in Nigeria.
Western Union currently carries a Zacks Rank #3 (Hold).
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