Western Union (WU) Collaborates To Enhance Digital Platform

The Western Union Company (NYSE:WU) recently announced a collaboration with TerraPay to allow mobile wallet and bank account payout. With this deal, Western Union’s account payout network can be used for sending cash to customers’ mobile wallets directly in Europe, Africa, Asia and Latin America.

TerraPay’s small value payments network links financial instruments across the globe. Its interoperability engine lends customers an easy access to sending and receiving money and the same can be carried out with the aid of various payment applications and platforms.

Western Union is really hopeful that this partnership will help boost the payments options around the world, thereby delivering remittances into mobile wallets. Tying up with TerraPay would help provide a feasible and automated channel for customers.

Meanwhile, TerraPay is eagerly looking forward to this deal’s results, which would help it penetrate into new markets and enable migrant workers transfer money to homes through a trustworthy medium.

Western Union’s cross-border, cross-currency money movement platform has facilitated money transaction. Operating in more than 200 countries and territories, its platform processed nearly 32 transactions every second and transacted $300 billion principal amount in 130 currencies last year. This itself vouches for the company’s efforts in boosting its portfolio and enhancing capabilities.

Currently, 70% of the company’s global digital transactions originate on mobile devices. Moreover, the company has expanded its westernunion.com platform to 50 countries and territories. It also has many other digital opportunities in progress. Of late, the company opened its unique global money movement platform to new partners. It also collaborated with Amazon (NASDAQ:AMZN) for the use of its network regarding online purchases. A significant progress in its global digital initiatives should further drive revenues for overall growth.

Revenues from the company’s digital platform have been rising for the past many quarters. The company’s digital business continued with its impressive run registering 21% revenue growth during the first nine months of 2018.

Shares of this Zacks Rank #2 (Buy) have lost 3.4% against its industry’s growth of 14.7%.

Other Stocks to Consider

Investors interested in the financial transaction services sector can also look into some other top-ranked stocks like Cardtronics plc (NASDAQ:CATM) , Evertec, Inc. (NYSE:EVTC) and Green Dot Corporation (NYSE:GDOT) .

Cardtronics plc provides automated consumer financial services via its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company sports a Zacks Rank #1 (Strong Buy) and came up with average four-quarter beat of 50.24%. You can see the complete list of today’s Zacks #1 Rank stocks here.

EVERTEC engages in transaction processing business, serving financial institutions, merchants, corporations and government agencies in Latin America and the Caribbean. The stock carries a Zacks Rank of 2 and pulled off average earnings surprise of 16.99% over the last four reported quarters.

Green Dot operates as a pro-consumer bank holding company, providing personal banking for the masses. The company has a Zacks Rank of 1 and delivered average four-quarter positive surprise of 18.40%.

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