At a time when remittance volumes across the globe have weakened due to COVID-19, Western Union Co. WU is trying to stay afloat with investments in its digital platform and business streamlining.
The company’s revenues have been under pressure over the past many years due to rising competition. Grappled with this, it prioritized investment in its digital money transfer arm as a key strategy to achieve long-term growth.
In fact, substantial work done on the digital front enabled this payment processor to tide over the ongoing difficult operating conditions posed by COVID-19. In the first, second and third quarter of 2020, WU.com saw respective 15%, 45% and 47% growth in average monthly active customer base. Also the September quarter saw the Western Union app getting downloaded maximum number of times by its customers compared with its peers. The company’s digital business provides incremental growth and attractive economics.
The company is