WU - Western Union: Separating Infrastructure From Distribution In Cross-Border Transfers

• Western Union is perceived as a legacy business dealing in money transfers, now threatened by new business models.
• It is important to differentiate between infrastructure and distribution when analyzing the cross-border money transfer industry.
• Western Union has started to develop new services to leverage its global infrastructure through partnerships with financial institutions and marketplaces.
• Its new digital platform and its infrastructure business could offset the decreasing legacy business over time, resuming revenue growth.
• Earnings yield is attractive, considering the chances of successful transition from a technological point of view.

For further details see: