WU Western Union Company

Global payment services provider Western Union Co. (WU) announced that it has successfully expanded its network of automated teller machines (ATM) to over 30,000 connections within a period of one year across the continents of Europe and Asia.

Western Union ATM’s machine facility has been spread out through Banca Intesa Sanpaolo in Italy, Garanti Bank in Turkey, Credit Europe Bank in Russia, Banca Transilvania in Romania, Bank of Georgia, Privat Bank in the Ukraine and Seven Bank in Japan.

Western Union’s money transfer offering via ATM is helpful for bank customers as it enables them to make transactions anytime with the help of basic details like a bank card and a Personal Identification Number. Even banks are appreciative of this service, which will help them attract more customers while leveraging their low cost automated technology. 

Western Union is also aggressively developing other electronic channels such as money transfer via mobile devices, online and also on phone. The company disclosed that there are 60 banks, which have agreed to join Western Union’s e-channel initiative by offering Western Union Account-Based Money Transfer Services (ABMT). Among these banks, 30 have already activated the service, while the remaining are in line to follow.

Western Union recognizes the need to introduce e-services with the growing use of technology in daily life. So, it is introducing and expanding its technology-driven service offerings.

Late last month, Western Union announced the formation of a new unit named Western Union Ventures, which would feature the company’s new-age service offerings to customers. This reflects management’s intention to grow the e-service offerings as a major contributor to earnings going forward.

Western Union, competing with Dallas, Texas-based Moneygram International Inc. (MGI), retains a Zacks rank # 3, implying a ‘Hold’ recommendation over the short term (1-3 months).

 
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