Western Union plans: new digital product and more service points

Western Union reported a 6% increase in remittance transfers, driven primarily by 13% growth in digital transactions, during the first quarter of 2024.

Western Union's latest earnings report shows significant growth in remittance transfers globally during 2024. This increase is mainly attributed to the boom in digital transactions, which grew by 13% in the first quarter of the year and accounted for 31% of all user transactions during this period. The company's revenue exceeded US$1 billion in the period, representing an increase of 3% compared to the same quarter of the previous year.

According to a study by the consulting firm Bain & Company, the adoption of electronic payments in Colombia is projected to reach 10% by 2026 and 11% by 2027. In addition, a 9% increase in revenue generated by these payment methods is expected in the region, reaching US$35 billion by 2026. This would represent a higher growth rate compared to Europe (4%) and North America (6%).

“Over the past year, remittances have represented a significant source of income in Colombia, serving as a vital support to cover basic household expenses. These funds help cover food, housing, utilities, debts, health care and education,” said Mauricio García, vice president of Western Union for South America. In addition, García noted that “these resources are also used for the creation of new projects, the purchase of properties, travel and medical treatments, among other uses.”

According to the Banco de la República, the country has received remittances totaling US$2,720.77 million so far in 2024, reflecting an increase of 9.88% compared to the same period last year. The report highlights that February was the month with the highest income, reaching US$913.93 million and registering an increase of 9.76% compared to the same month of the previous year. These remittances come mainly from the United States (53%), followed by Spain (13%), Chile and the United Kingdom, the latter with 4% respectively.

"These results underline the importance of remittances in the national economy and emphasize the need to continue implementing strategies for financial connectivity in the country. This implies developing various options that facilitate efficient transfers and instant payments for users, companies and financial institutions," Mauricio García emphasized. Following this trend, the company projects that the adoption of these channels will continue to grow in the coming years, anticipating that they could reach 10.7 million users worldwide by 2027.

Western Union closed 2023 with a 5% growth in the number of transactions and greater presence in the Peruvian market, which translated into revenues of US$ 4.36 billion, thus exceeding expectations. This year, the company got off to a good start and hopes to continue growing based on the strengthening of its digital channels and the maturation of the remittance market.