The Western Union Company WU recently joined forces with Bank Rakyat Indonesia (BRI), which is one of the most well-established state-owned banks of Indonesia. Following the latest move, Indonesian customers can utilize Western Union’s money transfer services to send and receive money through the nationwide, extensive branch network locations of BRI.
For the time being, customers can receive money at 4,000 BRI locations. However, they are likely to get full access to the broad network of more than 8,000 BRI locations within the coming months. Also, the outbound money transfer services from Indonesia are likely to be available at BRI locations from later 2021. This is likely to empower global senders to make use of Western Union's expanded retail Agent network or digital services prevalent across 75 countries and territories.
Notably, the latest tie-up seems to be a win-win situation for both Western Union and BRI. In fact, both the companies have been making concerted efforts to help customers by offering seamless, secured and time savy global money transfer services.
On one hand, the recent partnership is expected to help Western Union in strengthening its presence across Indonesia. Per World Bank, the region has been identified as one of the leading remittance recipients in the East Asia and Pacific Region during last year.
Also, the move is in sync with Western Union’s efforts to extend convenient money transfer experience for customers across urban, remote and rural areas and address cross-border money movement hassles. On the other hand, the global money movement platform of Western Union will help BRI in fulfilling its endeavor of providing enhanced financial services to Indonesians.
Shares of this Zacks Rank #3 (Hold) company have gained 37.4% in a year compared with the industry’s growth of 32.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moreover, Western Union has been pursuing collaborations with several financial service providers worldwide in a bid to upgrade its digital capabilities and for better management of international payments.
Prior to the recent tie-up, its Business Solution unit partnered with Triterras TRIT in March 2021 for extending its WU EDGE platform for easing cross-border payment services between traders and lenders on one of the platforms of Triterras named Kratos. While Western Union joined forces with Advance America this year to provide the latter’s customers with enhanced digital services, the company has tied up with Walmart WMT to offer its customers with expanded domestic and international payment services.
Time and again, the company has made substantial investments to build a robust digital arm, which yielded results for the company amid the COVID-19 induced turmoil. Its enhanced money transfer services proved to be of great use amid the dismal period, wherein people residing away from their families had to resort to money transfers to keep their families’ needs met.
With the COVID-19 pandemic resulting in health woes worldwide, people realized the benefits of no-touch payments and the trend of digital payments came to the forefront. Also, if funds are moved across borders on a real-time basis, it would take less time and result in reduced costs. All these factors have played a vital role in strengthening the company’s digital revenues, which after exhibiting a robust performance last year, is likely to reach around $1 billion this year, per management.
Another company that has made significant investments to upgrade its digital arm is MoneyGram International Inc. MGI.
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