Western Union Sees Unexpected Growth in First Quarter
The first quarter of 2013 turned out to be a fairly good one for the money transfer giant Western Union. While the results were still down, they did beat Wall Street expectations which could signal a better 2013. This follows a 5% price drop in 2012 in an effort to gain more customers. It appears that effort is paying off.
Much of the growth comes from an increased volume of transactions in Mexico. Last year, the company was forced to cut ties with more than 7,000 locations in Mexico because they failed to comply with company rules and federal regulations. Since then, Western Union has been working on rebuilding its reputation and its trustworthiness in the community, all while recovering from a loss in business.
At the moment, Western Union is focusing heavily on digital money transfers as more customers begin moving to the web for financial management. Google recently announced a new option through Gmail where users can send money as email attachments online. This threatens the profit margin and customer base for companies like Western Union, which is why they are striving so hard to be competitive.
Western Union executives expect to “exit 2013 with strong momentum.” The first quarter was a good indication of that.