Western Union (WU) & Beforepay Team Up for SNPL in Australia
The Western Union Company WU recently announced a collaboration with an Australian fintech Beforepay to enhance cross-border money transfers with a Send Now, Pay Later (“SNPL”) service. This is expected to combine lending and remittance services and position Western Union for better penetration of the growing remittance market.
The Send Now, Pay Later offer will blend WU’s cross-border and cross-currency money movement services with Beforepay’s wage-advance product. This ‘first-of-its-kind’ collaboration will likely enable consumers to borrow up to AUD 2000 for remittance.
Western Union’s research revealed that 44% of Australian consumers would like to have the SNPL option for remittance purposes. The company’s digital channels will provide the wage-advance product, which can be repaid in installments.
The move is in line with WU’s Evolve 2025 strategy, which intends to bring high-value and accessible financial services to address the growing demand. The company expects its Evolve 2025 strategy to boost its efficiency and deliver mid-single-digit growth in the bottom line for 2024 and 2025.
With the remittance market expected to grow in the coming years, Western Union’s constant effort to expand its presence in the market is noteworthy. Creating a seamless omnichannel digital experience for the customers is expected to boost its market share and capture a sizeable chunk of the growth.
Earlier this year, it resumed its money remittance services to Cuba, following a two-year halt due to government sanctions.
Price Performance
Western Union’s shares have declined 4.9% in the year-to-date period against the 4.5% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Western Union currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are Envestnet, Inc. ENV, Fiserv, Inc. FISV and Visa Inc. V, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Berwyn, PA-based Envestnet provides wealth management services in the domestic and international markets. The Zacks Consensus Estimate for ENV’s 2023 earnings implies an 11.3% year-over-year growth.
Headquartered in Brookfield, WI, Fiserv offers payment and financial services globally. The Zacks Consensus Estimate for FISV’s 2023 earnings indicates a 12.5% year-over-year increase.
Based in San Francisco, Visa is a global payments technology giant. The Zacks Consensus Estimate for V’s fiscal 2023 earnings suggests 12.4% year-over-year growth.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Visa Inc. (V) : Free Stock Analysis Report
Fiserv, Inc. (FISV) : Free Stock Analysis Report
The Western Union Company (WU) : Free Stock Analysis Report
Envestnet, Inc (ENV) : Free Stock Analysis Report
