Western Union Co. WU has linked its cross-border digital payment platform with Google Pay, which is an online payment system of Google.
With this connection, Google Pay users will now be able to send money to India and Singapore via the company’s network of bank accounts, wallets and retail locations.
By the year-end, this service will be expanded globally. Funds can be sent in minutes to billions of bank accounts, millions of wallets and cards. Also, Western Union’s more than half a million retail locations in 200 countries and territories will be used for remittance.
Google Pay’s Wide Reach
Users may fund their transactions using a Google Pay bank account or card. This service is well-timed because of its ease of moving money through Google Pay, especially during the present hour of global crisis. In pandemic-stricken India, transfer of funds from families and other support are urgently required at the moment.
Google Pay is one of the most frequently used applications with 150 million customers across 40 countries. Its hassle-free usage by handheld devices makes it a go-to platform for making payments. The enhanced security owing to redesigned Google Pay app (Android and iOS) gives users a peace of mind.
Cross-Border Business to Gain
Google Pay will help expand Western Union’s digital cross-border business and advance its growth strategy. It will aid the company in growing its market opportunity beyond its consumer services.
Western Union is monetizing its cross-border money transfer solution by offering it as a plug-and-play platform for other users, such as financial, telecom and tech players. This also provides entities with an inexpensive solution to use the vast payment functionality of Western Union.
The company’s cross-border activity fared pretty strongly in the first quarter. The principal amount remitted across borders was up 28%, reflecting a comprehensive upside as the World Bank had forecast a 7% decline.
Strong Market Growth in Cross-Border Operations
Migrants and their loved ones form a large customer segment for Western Union. According to the United Nations, there are more than 270 million migrants worldwide and many make remittances. If the recipients in their home country looking to use Western Union services are taken into account, the company’s potential customer base can burgeon to more than 0.5 billion people.
Also, migrants are a growing, hardworking and upwardly mobile lot with significant spending power. Per a Western Union study, $1.3 trillion of spending power is in the hands of the United States alone. This amount can further shoot up if considered on a global scale.
This clearly shows that Western Union has great prospects ahead.
Stock Performance and Zacks Rank
Year to date, the stock has gained 16.23% against its industry’’s decline of 0.3%.
Other players in the same space with the likes of MoneyGram International Inc. MGI, PayPal Holdings, Inc. PYPL and Square, Inc. SQ have also risen 52.6%, 6.2% and 1.4%, respectively.
Western Union carries a Zacks Rank #3 (Hold), presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year’s 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report