Western Union (WU) & MoMo to Support Remittances in Vietnam

·3-min read

The Western Union Company WU recently announced that the company has struck a strategic partnership with Vietnamese Fintech unicorn, MoMo, to provide Western Union money transfers on the super app in Vietnam. The deal is the first of its kind, enabling clients to receive WU money transfers directly in the MoMo app.

Western Union research suggests that 81% of customers in Vietnam wanted such integrated capabilities from one super app. This highlights a massive demand for the company’s services in the market. WU stated that World Bank data suggests that Vietnam was the 10th largest remittance-receiving country in the world last year, making it the third largest in East Asia and Pacific region. The country received around $19 billion in the last year alone.

The latest partnership with MoMo is in line with Western Union’s Evolve 2025 strategy, which intends to bring high-value and accessible financial services to address the growing demand for cross-border money transfers. The latest move is expected to bring MoMo’s 31 million clients to Western Union’s vast network, as they can receive money transfers digitally from around the globe. WU is present in more than 200 countries and territories and supports money flows in around 130 currencies.

WU actively pursues opportunities to expand its geographical footprint and services offered. Its moves to strengthen operations in growing and emerging economies are expected to position the company for long-term growth. As such, its focus on the remittance market of the Indo-Pacific will likely be a major positive.

With the remittance market expected to grow rapidly in the coming years, WU’s constant efforts to expand its presence in emerging markets can increase its transaction volumes. Creating a seamless omnichannel digital experience for the customers is expected to boost its market share and capture a sizeable chunk of the growth.

Price Performance

Western Union’s shares have declined 21.8% in the year-to-date period against the 1.8% rise of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Western Unioncurrently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are Nayax Ltd. NYAX, International Money Express, Inc. IMXI and Remitly Global, Inc. RELY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Herzliya, Israel-based Nayax operates a payment platform globally. The Zacks Consensus Estimate for NYAX’s 2023 earnings indicates a 54.4% year-over-year increase.

Headquartered in Miami, International Money Express offers money remittance services. The Zacks Consensus Estimate for IMXI’s 2023 earnings indicates a 24.3% year-over-year increase.

Based in Seattle, WA, Remitly Global is a digital financial services provider. The Zacks Consensus Estimate for RELY’s 2023 earnings suggests 5.9% year-over-year growth.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Western Union Company (WU) : Free Stock Analysis Report

Remitly Global, Inc. (RELY) : Free Stock Analysis Report


Nayax Ltd. (NYAX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research