Yahoo Finance Western Union (WU) to Ease Mexico's Electronic Money Transfers
The Western Union Company WU teamed up with Mexico-based financial services provider and specialty retailer Elektra to provide diversified money transfer choices across the country. WU’s shares lost 2.8% on Sep 13, replicating declines in broader markets.
Elektra also remains the leading non-bank cash advance service provider in the United States. Thanks to the latest partnership, Western Union users in Mexico with an active account at Banco Azteca, which is owned by Elektra, can seamlessly receive money sent from the United States into their accounts by simply sending a message through Chatbot.
A Chatbot is an artificial intelligence feature that allows businesses to personally communicate with customers via the Internet, freeing them from the expense of hiring human representatives. The tool remains embedded and can be utilized in any major messaging app.
In order to avail benefits of the new digital capability, Western Union users initially need to save the Banco Azteca App and the name of the Chatbot as "My money transfer" in their mobile phones.
Subsequently, in order to initiate a conversation from WhatsApp, a text needs to be sent via Chatbot from the telephone number registered with the Banco Azteca account. The transaction number and amount are then needed to be confirmed, following which the money gets deposited in near real-time to the beneficiary account. Ensuring increased transparency, the money transfer receipt will be shared through Chatbot and email.
The latest partnership demonstrates Western Union’s intensified focus on establishing a solid footprint as a leading money transfer service provider across Mexico. Increased utilization of WU’s money transfer services is expected to boost its money transfer revenues, a significant contributor to its top line.
Western Union already boasts a widespread network of retail locations in the country and its recent move to make technology investments for greater convenience, comfort and flexibility can only add strength to its nationwide presence. Elektra, an innovative technology solutions provider, seems to be the apt partner for complementing WU’s endeavor.
The facility of making money transfers possible with the help of mobile phones across a country like Mexico, a significant part of whose population holds an active WhatsApp account, seems to be a time-opportune move on the part of Western Union. The country remains a hot spot for substantial electronic transfers, owing to widespread digital adoption and a rising number of Internet users.
This year, Western Union also expanded its money transfer services across Mexico, available at 332 branch locations of Fundacion Donde and 1,800-plus locations of the leading retail chain, 7-Eleven Mexico.
Shares of Western Union have gained 17.7% in the past six months compared with the industry’s 13.6% growth.
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WU currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the Business Services space are Payoneer Global Inc. PAYO, APi Group Corporation APG and PagSeguro Digital Ltd. PAGS. Payoneer Global sports a Zacks Rank #1 (Strong Buy), and APi Group and PagSeguro Digital carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Payoneer Global outpaced estimates in two the last four quarters and missed the mark twice, the average being 65.42%. The Zacks Consensus Estimate for PAYO’s 2023 earnings is pegged at 22 cents per share. A loss of 3 cents per share was reported in the prior year. The consensus mark for revenues suggests growth of 31.5% from the year-ago reported number. The consensus estimate for PAYO’s 2023 earnings has moved 83.3% north in the past 60 days.
APi Group’s earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average being 4.27%. The Zacks Consensus Estimate for APG’s 2023 earnings suggests an improvement of 13.5% from the year-ago reported figure. The consensus estimate for revenues also suggests growth of 7.9% from the prior-year reading. The consensus estimate for APG’s 2023 earnings has moved 0.7% north in the past 60 days.
The bottom line of PagSeguro Digital outpaced estimates in each of the last four quarters, the average being 9.30%. The Zacks Consensus Estimate for PAGS’s 2023 earnings suggests an improvement of 13% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 3.6% from the year-ago actual. The consensus mark for PAGS’s 2023 earnings has moved 1% north in the past 30 days.
Shares of Payoneer Global, APi Group and PagSeguro Digital have gained 1.4%, 29.4% and 9%, respectively, in the past six months.
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The Western Union Company (WU) : Free Stock Analysis Report
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