The results of Western Union’s operations in the fourth quarter of 2023 indicate an increase in the popularity of using digital channels in the sphere of financial services.
The management of the mentioned company stated that multichannel will be the main promising direction for the months and years ahead.
Additional data on Western Union’s activities for the fourth quarter of last year indicate that the number of money transfer transactions by consumers increased by 5%. At the same time, the number of branded digital operations grew by 13%. The company’s revenue growth from branded virtual payment transactions reached 4%. Consumers’ money transfers at retail outlets increased by 0.2%.
Devin McGranahan, CEO of Western Union, said during a conference call with analysts that it had been almost ten years since the company had achieved transaction growth of more than 5% for several consecutive quarters. In this case, the recovery period after the coronavirus pandemic is not taken into account. Devin McGranahan says that the company is pleased with the changes in the business development trajectory.
The next-generation Western Union Digital app is currently available in 12 countries. More than 200,000 customers in Europe and more than 50,000 consumers in Argentina were onboarded to the company’s digital wallet.
Devin McGranahan says that the retail money transfer business, which the firm has been focusing on over the past 18 months, has grown significantly. The major amount within the relevant business increased by almost 20%.
Matt Cagwin, Chief Financial Officer of Western Union, says that in the fourth quarter of last year, the dynamic was positive in North America and the Asia-Pacific region. He also noted that the trend of retail transactions has improved in Europe. Separately, Matt Cagwin said consumer services should continue to grow in the low double-digit range.
Omnichannel users generate 2.5 times more transactions than single-channel clients. This was announced by the management of Western Union during a conference call.
Currently, multichannel, which can also be described as versatility, is increasingly in demand in the sphere of financial services.
Devin McGranahan says that a significant percentage of new digital customers last year were formed by prior retail customers and have a higher average income per user. He also stated that the company is focused on revenue growth as part of an overall ecosystem strategy. In his opinion, digital wallets will help increase profits while reducing customer churn.
Western Union expects revenue on an adjusted basis in the current year to range from $4.1 billion to $4.2 billion. During after-hours trading, investors reduced the share price by 1%.
Western Union is an American multinational financial services corporation. The organization is headquartered in Denver, Colorado. The firm was founded in 1851 as the New York and Mississippi Valley Printing Telegraph Company. Five years later, the brand changed its name to the Western Union Telegraph Company.
As we have reported earlier, Western Union Turns to MFS to Expand Global Money Transfers.
