Western Union to Tap Stablecoins and AI for Greater Efficiencies

Western Union is looking to stablecoins and artificial intelligence (AI) to deliver efficiencies at a time when it is dealing with the effects of macroeconomic and political uncertainty.

A slowdown in its North America retail business and lower revenue in Iraq drove a 4% decrease in revenue in the second quarter, the provider of cross-border, cross-currency money movement, payments and digital financial services said in a Monday (July 28) earnings release.

Western Union’s business involving Iraq has been impacted for more than a year by sanctions placed on 14 Iraqi banks.

“We continue to execute against our Evolve 2025 strategy, delivering a respectable quarter despite increased macroeconomic and political uncertainty,” Western Union President and CEO Devin McGranahan said in the release.

Western Union’s Evolve 2025 strategy includes efforts to optimize its retail experiences, accelerate its digital offerings, deliver accessible financial services and develop operational excellence, according to a presentation released Monday.

The company said in the presentation that it sees opportunities in the use of stablecoins for remittances. Western Union aims to use the technology to reduce friction and float in cross-border transfers, provide on-ramps and off-ramps for crypto-fiat conversions, reduce its reliance on intermediaries, and add crypto capabilities to its digital wallet.

This reinforces a July 21 report in which McGranahan said the company sees stablecoins as an opportunity rather than a threat. He told Bloomberg News that crypto-fiat conversions is an opportunity for Western Union because “last I checked, you couldn’t spend stablecoin if you wanted to buy a Coca Cola.”

Western Union is also using AI to cut time, cost and complexity across its business, including operations, marketing and customer service, according to the presentation.

“We’re using AI where it matters — to do more, faster and smarter,” the presentation said.

In the earnings release, Western Union said its slowdown in the second quarter was partially offset by growth in its Branded Digital business, which was up 6%, and its Consumer Services business, which was up 39%.

The growth in Consumer Services was driven by its acquisition of Eurochange Limited and other initiatives to expand its Travel Money business in Europe, according to the release.

Western Union completed its acquisition of Eurochange Limited, a U.K. foreign exchange expert in April, saying the deal boosts its consumer services segment, expands its network of owned locations, and expands the products and services available to its customers.