Western Union (WU) Expands Services in Peru, Boosts Footprint
The Western Union Company WU has partnered with PlazaVea, Vivanda and Metro Supermarkets to expand its services in Peru. This would enable local clients to send and receive money in an innovative and seamless way.
This move bodes well for Western Union, which has a solid digital arm focusing on improving money transfer services. The expansion of its digital arm is a good means of growing business organically. Its Consumer-to-Consumer segment accounts for 89% of its total revenues, which is expected to increase when more customers from Peru join the WU network, which is present in a large number of regions.
WU’s customers can now send and receive money, pay for services and exchange currency at 10 PlazaVea, Vivanda and Metro supermarket locations. Growing remittances despite unfavorable global factors backed WU’s decision to penetrate new markets, as remittances become crucial for economies.
Western Union has also teamed up with BIM app to launch its new e-wallet service in Peru. This service will provide access to remittances through an app, via which customers can search for remittances, complete the data and confirm the operation, which is secured by a password. The amount received will immediately be available for use in the BIM balance.
Under WU’s recently announced strategy, it aims to improve customer experience by making it easier to send and receive money in less time and deliver it directly to customers’ bank branches. This builds on WU’s history and solid foundation to improve relationships with its customers.
Peru’s high annual remittances offer an attractive market for WU. Therefore, expansion in Peru should reap benefits in the form of an increase in the consideration charged.
Shares of Western Union have lost 21.1% year to date against the industry’s growth of 4%.
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Zacks Rank & Key Picks
Western Union currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Financial Transaction Services industry are Expensify, Inc. EXFY, Remitly Global, Inc. RELY and Visa Inc. V. Each of these companies carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of Expensify outpaced estimates in two of the trailing four quarters, while missing in the other two, the average surprise being 18.5%.
The Zacks Consensus Estimate for EXFY’s 2023 earnings suggests an improvement of 28.1%, while the same for revenues indicates growth of 8.8% from the corresponding year-ago reported figures. The consensus mark for EXFY’s 2023 earnings has moved 24.2% north in the past 30 days.
Remitly Global’s bottom line outpaced estimates in two of the trailing four quarters while it missing in the other two, the average surprise being 10.9%.
The Zacks Consensus Estimate for RELY’s 2023 sales indicates a 34% rise from the prior-year reported figures.
The bottom line of Visa outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.6%.
The Zacks Consensus Estimate for V’s 2023 earnings indicates a 12.4% rise, while the same for revenues suggests 10% growth from the respective prior-year reported figures.
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