Western Union Launches WU Pay - Analyst Blog
24 3월 2012 - 2:04AM
Zacks
In a conscious effort to expand its e-payment service,
Western Union Co. (WU) has announced the launch of
WU Pay.
The recently launched platform will enable customers to pay for
their online purchases from their bank’s online pay service or in
cash at any of the company’s agent locations. WU Pay is also of
great use to consumers who do not have a debit or credit card as
they can make payments without submitting a credit or debit card
number.
WU Pay can be used to make online payments across various
merchant sites including Sears, Kmart, Buy.com, Tiger Direct,
RedCats USA and others. Consumers can also use the payment option
to buy virtual gift cards from more than 60 retailers including
J. C. Penney (JCP), American Airlines,
Amazon (AMZN), Dell (DELL),
Home Depot (HD) and others.
Last year, Western Union acquired eBillme, an online payment
platform, and the WU Pay service is based on this platform.
Western Union is intent on aggressively building its electronic
payments segment due to rapidly decreasing technology cost, reduced
operational and processing costs and an increasing trend towards
online commerce. On the other hand, the traditional form of
physical money transfer is losing its sheen due to lack of
convenience, less security, and limited geographical reach.
Money transfer services through electronic channels accounted
for approximately 3% of consolidated revenue for the year ended
December 31, 2011. The company had already been providing online
money transfer services in more than 20 countries during the same
period. Last year, the company also announced the formation of a
new unit named Western Union Ventures, which will feature the
company’s new-age service offerings for its customers.
Management expects the digitalized platform for the remittance
market to evolve at a much faster rate than the traditional means
in the upcoming period. The company’s westernunion.com business is
worth over $100 million at present and management expects $500
million in revenue from this line of business by 2015.
The recent acquisition of PlaySpan Inc. by Visa
Inc. (V) demonstrates the increasing popularity of the
digital payment platform.
Western Union competes closely with Moneygram
International, Inc. (MGI). Western Union currently
retains a Zacks # 3 Rank, which translates into a short-term ‘Hold’
rating. We are also maintaining our long-term “Neutral”
recommendation on its shares.
AMAZON.COM INC (AMZN): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis Report
MONEYGRAM INTL (MGI): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
WESTERN UNION (WU): Free Stock Analysis Report
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Western Union (NYSE:WU)
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Western Union (NYSE:WU)
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