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