Western Union is one of the participants in the global payment services market. Together with the trademark payment systems Vigo, Orlando Valuta, Pago Facil and Western Union's Western Union Business Solutions division, Western Union offers consumers a fast, reliable and convenient way to send and receive money transfers worldwide, make payments and buy money orders.
Performance indicators
2023: Net loss - 247 million rubles
The net loss of the NPO Western Union DP Vostok (the Russian subsidiary of Western Union) in 2023 reached 247.1 million rubles, while a year earlier the company's net profit was measured at 45.6 million rubles. Such data are given in the reporting under RAS, which was published in mid-April 2024.
According to Interfax, citing documents from the Western Union DP Vostok NGO, the company's net income at the end of 2023 decreased significantly - to 188.3 million rubles from 1.3 billion rubles in 2022. Operating costs almost tripled - to 395.7 million rubles against 1.1 billion rubles in 2022.
As of December 31, 2023, the volume of assets of the Russian subsidiary Western Union amounted to 2.3 billion rubles, which is 11.5% less than a year ago at 2.6 billion rubles.
By April 2024, Western Union is still not operating in the Russian market after the company announced in March 2022 that it would stop its activities in the Russian Federation. Subsequently, the NPO Western Union DP Vostok was excluded from the register of payment systems operators in Russia. At the same time, the company continued to provide money transfer services to its partners - banks and post offices in the CIS countries (except Belarus).
The reporting of the NPO Western Union DP Vostok states that the financial position of the company allows it to fully fulfill its obligations for at least 12 months after the reporting date, but "there is significant uncertainty" about whether it will be able to continue its work in the future. It is also noted that there is a possibility of negative consequences against the background of the exclusion of Western Union DP Vostok from the register of payment systems operators and a loss in 2023, which could lead to the completion of the company's work in principle.[1]
2022: Loss of 12% of annual revenue due to withdrawal from Russia and Belarus
Western Union's revenue in 2022 amounted to approximately $4.48 billion, which is 12% less than the result for the previous year, when the company received $5.07 billion. Such data are provided in the financial report published on February 7, 2023.
The suspension of operations in Russia and Belarus had a negative impact on Western Union's performance. In the consumer segment, the company's revenue in 2022 decreased by 9%, amounting to $3.99 billion ($4.39 billion a year earlier). In the business services sector, revenue on an annualized basis decreased by 53% - from $421.8 million in 2021 to $196.9 million in 2022. All other products brought in $285.1 million, showing an increase of 12% (approximately $255 million in 2021).
The report notes that the curtailment of business in Russia and Belarus in the current geopolitical situation led to a reduction in annual revenue by about 2%. This process, initiated in March 2022, turned into losses of approximately $10 million. In addition, performance indicators were influenced inflation by the. To Argentina
At the same time, Western Union showed an increase in net profit by 13% on an annualized basis: if in 2021 it amounted to $805.8 million, then in 2022 - $910.6 million. It is said that the closure of Russian business led to a reduction in the number of transactions. At the end of 2022, it amounted to 274.1 million, which is about 10% less than the result of 305.9 million demonstrated in 2021.
The report also emphasizes that Western Union is implementing the Evolve 2025 strategy, announced in October 2022. Its goal is to improve the products and services provided to customers. In particular, in addition to money transfers, the company intends to develop other financial services for the "purposeful population of the world."[2]
Business in Russia
2022
Appointment of Olga Gerasimova as CEO of the Russian office of Western Union
On August 29, 2022, it became known about the change of the head of the Russian representative office of Western Union. Instead of Tatyana Klimova, who headed the office since March 2022, Olga Gerasimova was appointed. This is evidenced by the data of the USRY system, cited by Interfax. Read more here.
Suspension of operations in Russia cost the company 3% of revenue in the 2nd quarter
The suspension of Western Union operations in Russia and Belarus cost the company 3% of revenue. She announced this in her statements for the second quarter of 2022.
 | As expected, the suspension of operations in Russia and Belarus negatively affected the revenue from digital money transfers and transactions, reducing reporting and constant foreign exchange revenue by six percentage points and reducing the number of operations by 19 percentage points, Western Union said in its statements. |  |
Western Union chief Devin McGranehan indicated revenue growth was broadly in line with expectations, although it was below long-term targets. The revenue managed to increase, despite the growing "economic pressure and increased geopolitical uncertainty."
| | We expect the macroeconomic environment to continue to deteriorate year over year in line with current prevailing forecasts, "he commented. | |
The company's total revenue for the second quarter of 2022 decreased by 12% and amounted to $1.1 billion. For the S2S segment, the fall was 9%. Revenues from digital money transfers and transactions also decreased by 6%. Westernunion.com revenue fell by 1%, including due to the termination of work in the Russian Federation and Belarus.
In an interview with the radio Sputnik , Viktor Dostov, chairman of the Council of the Electronic Money and Money Transfers Association, expressed the opinion that most Russians will not even notice Western Union's refusal of domestic transfers.
| | I think that almost no one will notice what happened. Western Union most likely occupied some niche, but it was insignificant. A much larger niche in the Russian market is occupied by the Golden Crown payment service and transfers from card to card through the Fast Payment System or Sberbank services, as well as other players, - said Viktor Dostov.[3] | |
Stopping operations in Russia and Belarus cost the company $11 million in the 1st quarter
The shutdown of Western Union operations in Russia and Belarus cost the company $11 million, according to the company's statements for the first quarter of 2022. Business in the countries brought the company 4% of annual revenue.
Suspension of work in Russia and Belarus against the background of Russia's special operation in Ukraine
On March 10, 2022, it was announced that Western Union would stop working in Russia and Belarus from March 24 amid Russia's special operation in Ukraine.
Remittances sent from Russia to other countries and not paid to recipients until March 24 will be available to recipients in other countries at any time, the company's press service said. Transfers sent to Russia and not paid to the recipient by March 24 will be returned to the sender.
Closing transfers within Russia due to low demand
In February 2022, it became known that the Western Union money transfer system decided to close domestic remittances from April 1 due to their low demand. In this market, it competes with bank card transfers and the Fast Payment System. The company will continue cross-border transfers as usual and focus its efforts on developing a multi-channel platform for partner banks.
The transfer within Russia will not be possible on March 31, and from April 1 it will not be possible to receive a payment or refund. Senders will be able to return transfers not received by recipients from April 1 through post offices. From March 24, the limit of domestic transfers, the company will limit 5,000 rubles, as of February 6, 2022, the amount of the transfer depends on various conditions - it can range from 50,000 rubles to $7,500 (570,000 rubles).
The company plans to focus on "developing a traditionally sought-after international money transfer service," according to a Western Union spokesman. She will direct them to a multi-channel platform that allows Western Union partner banks "to quickly and in compliance with all regulatory requirements launch transfers abroad for their customers." The representative of the company did not disclose the turnover of domestic transfers[4] system[5].
2019: Limit the amount of transfers abroad to 600 thousand rubles per month
On July 22, 2019, it became known that Western Union sharply limited the amount of transfers abroad. The payment system has introduced a limit to comply with the law on combating money laundering and the financing of terrorism.
According to RBC, citing a letter sent to Western Union partners, the company has limited transfers abroad to the amount of 600 thousand rubles a month, in order to also comply with the recommendations of the Bank of Russia of January 14, 2019, in which credit institutions urge to closely monitor individual customer transactions. Prior to this, cross-border transfers were limited to $5 thousand (314.3 thousand rubles at the Central Bank rate as of July 22) for one operation.
To determine the total amount of shipments of one user , all transfers will be taken into account - regardless of the currency and method of transaction. The maximum total amount for transfer established by the payment system does not apply to transactions in Kazakhstan, Kyrgyzstan, China (including Hong Kong) and Vietnam. Up to a million rubles a month can be sent there from July 16, 2019.
According to the chairman of the board of the National Payment Council, Alma Obaeva, Western Union has a wider network of directions than other payment systems, entrepreneurs could use it to pay for gray imports. The Central Bank, according to Obaeva, could see suspicious operations in terms of transfers.
The company introduces restrictions in a very short time, and this indicates that Western Union is implementing the recommendations of the regulator, Alma Obaeva points out.
| | If we talk about the transfers of labor migrants, then, of course, the amounts sent are below this limit. However, the system works mainly outside the neighboring countries, and in these areas the introduced restriction can be significant, - said Maria Mikhailova, executive director of the National Payment Association.[6] | |
In the "Golden Crown" - the other largest system of international transfers - the limits have not changed recently, a company representative told the publication.
2010
Since 1991, Western Union has become a partner for more than 300 organizations in Russia, including such banks as: Rosselkhozbank, Promsvyazbank, Binbank, Bank Avangard and many others. The network of customer service points of the company has increased to more than 34 thousand points located even in the most remote corners of the country.
Western Union money transfers can be sent or received to more than 21 thousand Russian Post offices, as well as sent from more than 2 thousand MegaFon communication salons. In addition, you can make a money transfer to Western Union using the Westernunion.ru website or using the Visa QIWI Wallet and Yandex.Money electronic wallets. Also, Western Union services are available in the online banking system of some partner banks, for example, Vanguard Bank.
History
2021
Mastercard MoneySend Integration Plan
On November 17, 2021, the company Western Union MasterCard and strengthened its strategic partnership. Deepening cooperation includes integration services Mastercard MoneySend in the Western Union global network. More. here
Western Union losses from the legalization of bitcoin in El Salvador are estimated at $400 million per year
In mid-September 2021, it became known that the legalization of bitcoin in El Salvador could cost Western Union $400 million a year.
Difficulties with money transfers are one of the main reasons why Salvadoran President Nayib Bukele declared bitcoin legal tender. As part of the initiative, the government has launched its own national virtual wallet called Chivo, which offers free transactions and allows for rapid cross-border payments.
Jaime Garcia revealed that since he last sent cash, he now has the choice to pay expenses through Internet using the Western Union app, however, he nevertheless faces high costs of 12.5% for a $100 transfer. dollars
| | I think that there is financial bitcoin hygiene, which many people do not understand when it comes to a stored wallet, which is Chivo. It's not even that people don't trust the government. People don't trust platforms like Mt.Gox. The whole concept of bitcoin is decentralization - that individual people can take control of their financial condition and their money, "said Salvador resident Jaime Garcia. | |
Many relatives and friends send money to people still living in El Salvador. In 2020, they transferred a total of almost $6 billion, which is approximately 23% of the country's gross domestic product and a significant part of this amount went to intermediaries contributing to these international transfers.
According to President Nayib Bukele, cash providers such as Western Union and MoneyGram will lose $400 million a year in transfer fees that the public would need to use on a bitcoin scale. Mario Gomez Lozada, born and raised in El Salvador, worked as a banker with Merrill Lynch and Credit Score Suisse, and now trades derivatives for crypto property, believes the amount could approach $1 billion.
Before Nayib Bukele earned his reputation on bitcoin, some Salvadorans had already begun to make cheap, fast and unlimited crypto payments using the Strike application. The Strike app was launched in El Salvador in March 2021 and soon became the most downloaded app in the country. Many have started using the mobile payment app as a way to send and receive money from abroad.
However, according to experts, users should exercise some caution before switching completely to the new government wallet. Gladstein, who recently spent time in El Salvador, notes that the Chivo wallet is no different from the bank, meaning the government has the right to freeze the value. That is why he firmly believes that Salvadorans should take control of their financial fate by transferring bitcoin from Chivo to a wallet, where they can exercise more control over funds.[7]
2020: Buying 15% from Saudi Arabia fintech start-up STC Pay
In mid-November 2020, it became known that Western Union it bought 15% in fintech-, startup STC Pay which is a subsidiary of telecommunications giant Saudi Arabia STC Group. The deal amounted to $200 million, the service received an estimate of $1.3 billion. More. here
2010
The global network of Western Union, Vigo and Orlando Valuta has 470 thousand customer service points in more than 200 countries and territories of the world. In 2010, Western Union processed 214 million transactions between individuals worldwide worth $76 billion, and the company also made 405 million transfers between individuals and legal entities.
1910
Notes
- ↑ The Russian subsidiary of Western Union in 2023 received 247 million rubles. loss under RAS
- ↑ Western Union Reports Fourth Quarter and Full Year 2022 Results
- ↑ Western Union Reports Second Quarter 2022 Results
- ↑ [https://www.forbes.ru/finansy/454767-western-union-otkazetsa-ot-deneznyh-perevodov-vnutri-rossii-v-konce-marta of the Western Union
- ↑ will refuse money transfers within Russia at the end of March]
- ↑ Western Union sharply limited the amount of transfers abroad
- ↑ El Salvador’s new bitcoin wallets could cost Western Union and similar companies $400 million a year
Stock price dynamics
| Ticker company on the exchange: | NYSE:WU |
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