Western Union Projects Expansion Beyond Money Transfers in the Year 2024
Western Union, the global leader in consumer money transfers, reported a total revenue of $1.1 billion in Q4 2024, marking a slight decline from the same period in 2023. The company's media network business in the US was a major driver of this quarter's growth, with branded digital revenue increasing by 7%, accounting for a 25% share of the total revenue.
Despite the decline in revenue, Western Union continues to maintain its competitive edge in the consumer money transfer market. The company operates in "retail-heavy" corridors such as the US to Guatemala, the UK to India, and the UAE to the Philippines, among others.
However, the market landscape is evolving, with digital challengers gaining a larger share. This potential shift in Western Union's revenue mix could be influenced by the growing popularity of services like Wise, Remitly, and Global66, which are often more cost-effective, especially for online bank transfers.
In terms of pricing, Western Union's fees and exchange rates vary widely depending on factors like the destination country, transfer amount, and payment method. For instance, cash payments for cash pickup tend to be more expensive, while online bank transfers offer more competitive rates.
To help consumers compare Western Union's pricing with competitors, it's recommended to identify the transfer corridor, check the transfer amount and payment/delivery method, use comparison platforms, and consider speed and convenience needs. Tools like Monito or TopMoneyCompare can provide real-time fee and exchange rate comparisons for Western Union versus rivals like Wise, Remitly, and WorldRemit.
Western Union's full-year adjusted operating margin decreased from 20% in 2023 to 19% in 2024, due in part to a decline in revenue in Iraq. The company's overall CMT revenue for the full year 2024 declined 5% to $3.8 billion, with a 4% decline in Q4 2024 to $939 million.
However, Western Union's focus on digital services is paying off. Branded digital transactions grew 13% in Q4 2024, driving a 5% growth in cross-border principal to $26.5 billion. The acquisition of Singapore-based digital wallet Dash is not yet impacting Western Union's revenue.
Looking ahead, Western Union plans to roll out its cloud-based PoS system in North America, APAC, Europe, and LACA regions. The company forecasts a 0.5-2.8% decline in revenue on a GAAP basis to $4.09bn-4.19bn for 2025, with an operating margin of 18-20%.
Western Union's consumer services revenue also saw significant growth, rising by 56% to $119.4 million in Q4 2024, accounting for 11% of the company's revenue. On a full-year basis, consumer services revenue rose by 28% in 2024, accounting for 10% of Western Union's total revenue share. The company made $60 million in savings in 2024 and aims to hit $150 million in savings this year, ahead of schedule for its cost redeployment program.
As Western Union continues to push into new opportunities beyond transfers, it will be interesting to see how the company's revenue mix evolves in 2025 and beyond.
In view of the declining revenue in certain markets and the growing popularity of digital competitors like Wise, Remitly, and Global66, Western Union is considering diversifying its business in the realm of finance and investing to maintain its competitive edge. Beyond consumer money transfers, Western Union is planning to expand its digital services and invest in technologies such as a cloud-based PoS system to cater to a wider range of customers and offerings.
