Western Union digital revenue surged in the first quarter

Western Union, the global cross-border payment company, published strong quarterly results as the global economy rebounded. 

Western Union results

In a statement, Western Union said that its total revenue rose by 2% to $1.2 billion. This growth was driven by the strong growth of its consumer-to-consumer business, which grew by 9%. The performance was driven by a 77% transaction increase of its digital platforms like WesternUnion.com. Its retail money transfer service revenue declined but is generally in a recovery mode.

Western Union’s digital money transfer revenues soared by 45% while wu.com revenue jumped by 38%. By region, revenue in North America was flat while Europe rose by 8%. In Asia-Pacific, revenue jumped by 9%. On the other hand, its business solution revenue declined by 2%. In a statement, Hikmet Ersek, the company’s CEO said:

Competition is a challenge

The biggest challenge for Western Union is that competition in the money transfer sector is heating up. Many companies have moved into the sector and taken a substantial market share. For example, a company like TransferWise has grown from a small cross-border money transfer company into the current $5 billion juggernaut. 

Some of the other companies that are increasing competition in the sector are TransferGo, WorldRemit, and PaySend, among others. Some banks like Santander have also launched their transfer service while companies like PayPal and Square are gaining market share. There are also concerns that cryptocurrencies will displace some traditional companies.

Are you in the process of sending money to another country? At , we can help you save money by showing you the transaction costs charged by hundreds of companies.