Money transfer services are in demand across the globe and Western Union is a global giant in this regard. Migrant workers, expatriates and other professionals who live elsewhere on the planet away from their home nations, remit huge sums annually.
Western Union and Merchant Services Technology
Western union is one of the most used payment services worldwide with annual turnover of $5.6 billion USD, and a noteworthy revenue of $1.4 billion USD in 2017 Q4 earnings. In its move to secure its market share, the merchant services top player is taking steps to ward off threats from upstarts with a penchant for cost saving measures, processing time reduction and risk minimization in global money transfers.
As part of its strategic move, the company is investing in new technologies that can simplify its process, reduce transaction times and strengthen or leverage on existing security. This new target is being pursued by the company to keep off the competition from encroaching in its market share and attractiveness to merchant services developers.
Western Union was recently reviewed by Forbes to be witnessing growth in its online channels and this no doubt is a veritable area that it could be leveraging on with its new investments. Its online payment flexibility for merchant services is restricted to developed markets presently with Europe, America and Oceania, receiving the long end from these services. Africa, Middle East and Asia, presently have limited functionalities in its online processing module.
While Western Union have been slow to perfect its act in the emerging markets, competitors in the merchant services sphere like PayPal and Skill already have versions of online products that make it possible for customers to process payments online without the luxury to having to do a show at a local banking outlet.
This is one area where Western Union services really require to be tweaked. Online processing has become a defining way of life for many online stores and customers, who transfer money across the globe for one reason or the other.
Merchant Services Concerns and Limitations
It is perfectly within grasp that online fraud and the need to minimize losses perhaps rate high among the reasons for WU’s slow approach to MEAA (Middle East, Africa and Asia) online functionality, but if competitors have been able to get past this barrier, then the company really needs to revolutionize its processes and not lose out to more dynamic market readers. Credit card processor and POS Terminal functionalities have become highly developed in these markets.
What Western Union Offers
Individuals, companies and organizations are presently able to send money to beneficiaries through WU platform in such a way that they can walk into partnering banks and cash out their remittances. However, in selected markets, the same transactions can be carried out by debit or credit card online.
It is hoped that as WU develops new technologies and strengthen existing platforms, it can find a way to make online processing possible in emerging markets and sustain its market share. The Market for merchant services is expanding across the globe only the dynamic player stands the chance to be rewarded.