Western Union, Eurogiro Extend Pact for Multi-Year Term
World’s leading money transfer company, Western Union Co. (WU) has extended its earlier agreement with Eurogiro, a network of postal organizations, post banks, commercial banks and other payment service providers. The agreement spanning 16 years will continue to provide Western Union’s money transfer service to Eurogiro members. They will also be able to use Western Union’s digital services.
Eurogiro members in 52,000 agent locations spread over 30 countries, offer a network of convenient, familiar and reliable locations to its customers. Moreover, Eurogiro members will benefit from the easy accessibility since Western Union is present in nearly 500,000 locations across 200 countries.
To date, Western Union had been providing Eurogiro members seamless service in transferring cash across different locations. The renewal of the agreement will also take care of members in need of cashless money transfer via Western Union’s digital money transfer platform.
Western Union’s relationship with Eurogiro is quite old. Back in 1998, Eurogiro and Western Union joined forces to provide Western Union services at selected Eurogiro locations. The agreement was extended in 2007. For Western Union, the alliance with Eurogiro is of strategic importance, since the latter is one of the most trusted service providers in the world.
The company is continuously emphasizing on expanding its digital money transfer platform. The company sees huge potential in the digital money transfer segment, which is in great demand as consumers are increasingly choosing quicker and safer options to transfer money.
Western Union is nonetheless facing digital competition as more technology-savvy competitors enter the sector. One player, Xoom Corp. (XOOM), has a significant presence in this space. MoneyGram International Inc. (MGI), another money transfer company based in the United States, is also fast developing its digital money transfer business.
Western Union retains a Zacks Rank #3 (Hold). A better-ranked stock is Vantiv, Inc. (VNTV) with a Zacks Rank #2 (Buy).
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