Western Union Reports Increasing Digital Transfer Revenue in Q1

The Western Union Company has released its first quarter reports, saying that the revenue had been impacted by less retail money transfer along with its suspension of services in Russia and Belarus, a press release said Thursday (April 28).

Digital money transfers revenue grew 5%, representing 25% of customer-to-customer (C2C) revenues and 37% of transactions. Westernunion.com revenue grew 4%, cross-border revenue 7%.

“As I continue my assessment of Western Union’s business and its unique assets, I remain optimistic about the potential of the brand, the platform, and the market opportunity,” said Devin McGranahan, president and chief executive officer of Western Union. “Our long-term strategy development process is continuing, and I look forward to sharing in greater detail our plans for the future at our Investor Day which we will host in New York City in the fall.”

He added that the Russian and Belarusian services were suspended because of the war Russia began waging in Ukraine.

“We are saddened by the current situation and recognize the harm to our colleagues, customers, agents and partners who have been impacted. As a result of suspending business in those countries, we have revised our 2022 financial outlook downward.”

For the coming 2022, the company said it plans to have around $270 million in pre-tax gain.

The company also added that it had adjusted revenue growth that took into account the Russia factor and other sales related to business and divestitures.

See also: South Korea to Access Western Union with ICB App For Cross-Border Payments

PYMNTS wrote that Western Union rolled out its transfer services in South Korea in partnership with FinTech ICB’s mobile app.

The app, called Debunk Remit, will offer customers access to various money transfer options. ICB, one of the biggest South Korea cross-border FinTechs, processes $1.6 billion transactions every year.

“By expanding our money transfer services in Korea, we are offering customers more access points to send and receive money,” said Premmananth Krishna, head of Singapore, Indonesia and North Asia for Western Union, in a statement. “Our alliance with ICB reinforces Western Union’s commitment to power digital-driven convenience, enhancing the customer experience.”