Western Union (WU) & Tencent Partner to Expand Digital Reach

The Western Union Company WU recently announced its collaboration with Tencent Financial Technology. The company’s partnership with Tenpay Global, the cross-border payment platform of Tencent's renowned Weixin, is aimed at providing flexibility for WU users to transfer money to China directly through Weixin Pay wallets. Customers can remit up to $5,000 per transaction.

This move is a pivotal step forward for Western Union's ambitious Evolve 25 strategy aimed at amplifying digital growth and enhancing customer accessibility in the global money transfer landscape. By tapping into Tenpay Global's extensive network, Western Union is poised to streamline international money transfers and further improve customer convenience.

This move comes at an opportune time as China is the third largest recipient of remittances in the world. Leveraging Tencent's expertise in digital payment solutions, Western Union aims to leverage China's thriving digital economy and cater to the needs of its tech-savvy population. The Weixin platform caters to 1 billion users, giving WU access to a vast user base. Move like this is expected to result in improved transaction volumes, driving revenue growth in the future.

This strategic move underscores Western Union's forward-thinking approach and its agility to adapt to changing market dynamics. By welcoming digital-first strategies and forging key partnerships, Western Union is poised to consolidate its position as a global leader in the financial services industry.

In May 2024, WU’s peer Mastercard Incorporated MA partnered with Ant Group to expand payment options in China. Companies in the financial services industry are looking for ways to leverage China’s resurging economy to increase their transaction volumes.

Shares of Western Union have gained 9.7% in the past six months compared with the industry’s 5.7% growth. WU currently sports a Zacks Rank #1 (Strong Buy).

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Other Key Picks

A couple of other top-ranked stocks in the Business Services space are SPX Technologies, Inc. SPXC and Duolingo, Inc. DUOL. Each stock presently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

SPX Technologies’ earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched the mark once, the average surprise being 13.9%. The consensus mark for SPXC’s 2024 earnings and revenues implies an improvement of 24.4% and 14.7%, respectively, from the year-ago reported figure.

The consensus estimate for SPXC’s 2024 earnings has moved 2.3% north in the past 30 days. Shares of the company have gained 51% in the past six months.

The bottom line of Duolingo outpaced the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 115.2%. The consensus estimate for DUOL’s 2024 earnings is pegged at $1.74 per share, which indicates a nearly four-fold increase from the year-ago reported figure. The consensus mark for revenues implies a 37.8% increase from the year-ago reported figure.

The Zacks Consensus Estimate for DUOL’s 2024 earnings has moved 26.1% north in the past 30 days. Shares of the company have plunged 9.5% in the past six months.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

The Western Union Company (WU) : Free Stock Analysis Report

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Duolingo, Inc. (DUOL) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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