Western Union Co. WU has announced the launch of online international money transfer service in Thailand. This move is in line with the company’s effort to grow in Asia.
The online service, launched in tandem with Central Department Store — one of the largest department store chains in Thailand — will allow customers to remit funds around the world, 24/7, via the Western Union mobile app or transactional Westernunion.com/th.
Western Union’s digital services in Thailand will allow payout into billions of bank accounts across the globe in nearly 100 countries and territories, or to the company’s more than half a million Agent locations in more than 200 countries and territories.
Customers can pay for their transactions in their local currency within the digital channels using a choice of card or account, or commence their transaction on app or web and pay in-person at retail. The company foresees huge growth in Thailand due to the government’s thrust on digital industry, which will be a significant driver of the country’s economic transformation strategy. Western Union’s digital services align with the government's ‘Thailand 4.0’ policy to create an economy driven by innovation and technology.
Moreover, Thailand’s internet savvy population will easily adopt Western Union’s digital services.
Western Union has been investing heavily in its digital platform, which has been paying off well. Numerous alliances, pacts and deal renewals have also broadened the company’s network in the United States and across the globe.
Digitally initiated money transfer, which includes westernunion.com and Mobile Money Transfer, is the fastest-growing segment of the market that is bringing new customers and increased business to Western Union. Revenues from the company’s digital platform have been increasing for the past many quarters.
Recently, Western Union announced its plan to ramp up digital expansion around the globe. The company intends to grow in more than 200 countries and territories with complete focus on the mobile channel that helps it generate nearly 70% of its digital transactions.
Established players in the money transfer industry like Western Union and MoneyGram International Inc. MGI have witnessed a rapid shift in the way money is transferred.. This change in the industry has shifted the market share from the incumbent players to the new ones. For instance, PayPal Holdings, Inc. PYPL, Square Inc. SQ are young companies that generate greater share of revenues from digital payment business than the established players.
Many other tech start-ups are also offering easy and cheap money transfer services, posing a significant threat to Western Union.
Year to date the stock has gained 13.5%, compared with the industry’s growth of 29%.
Western Union carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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