Western Union Expands Money Transfer Service to Digital Assets, Testing in South America and Africa.
Western Union, one of the world's largest money transfer service providers with revenue of around 1 billion USD, has announced a strategy to expand stablecoin usage to optimize international money transfers and develop digital service segments. The company is actively entering the digital asset market and deploying cross-border payment solutions, while considering launching stablecoin storage and exchange functions in its internal digital wallet. The information was confirmed by CEO Devin McGranahan in an interview with Bloomberg.
Western Union views stablecoin as a tool to improve three main use cases. First, accelerating international money transfers to enhance user experience and reduce costs. Second, converting stablecoin to fiat currency, especially in areas with limited access to national currency. Finally, providing value storage capabilities through stablecoin, particularly in countries with high inflation.
In South America and Africa, Western Union is testing faster payment options and local currency conversion through partnerships with payment infrastructure providers. The company is also negotiating with partners to build a global on-ramp and off-ramp system, including stablecoin buying and selling services through its payment network.
Focusing on International Markets Despite Challenges
Western Union is also considering integrating stablecoin into its digital wallet, allowing customers to accumulate, convert, and use digital assets. The company's digital segment is growing significantly compared to traditional services, with account and digital wallet payment volumes increasing over 30% in most regions.
Despite stricter immigration policies in the US, Western Union reports only a slight decline in transfer volumes, as most core customers are already established in the United States and continue to send money to families abroad. Currently, 60% of Western Union's revenue comes from international markets, which is also the focus of its upcoming expansion plan.
Key regions include the Middle East, Asia, Africa, and Europe, where the company has seen strong growth in recent quarters. This is not the first time Western Union has experimented with new financial technology, as in 2023, the company participated in a central bank's retail digital currency pilot program for money transfers to the Philippines.
