Money Transfer Apps Transform Remittance Industry

Money transfer apps are giving traditional banks a run for their money when it comes to moving money and digital remittance. In the past few years, there has been a sharp increase in the number of people using digital money transfer services.

One of the major driving forces for digital transfer is advancements in technology. Unlike in the past when people mainly relied on wire transfers offered by traditional banks, increased internet connectivity has led to the rise of hundreds of money transfer apps.

With money transfer apps, you can send money and ensure that the recipient gets it the same day. Sometimes the transfer is even instant as opposed to traditional wire transfer methods. The need for convenience and faster transfers has attracted many people to start using money transfer apps around the world?

How Western Union is transforming the global digital remittance market

Western Union is one of the oldest money transfer services. Although technological advancements have led to the rise of more players, WU has continued to dominate the global digital remittance market in many aspects. It has taken advantage of the increase in internet connectivity to expand to almost every corner of the world.

The United States, Germany, France, Australia, and the United Kingdom have particularly recorded a higher number of digital money transfers since the pandemic started. This is attributed to the effects brought by the COVID-19 pandemic where millions of people have lost jobs and need financial assistance.

Why digital remittances have skyrocketed in the recent past

There’s no doubt that a lot of people are turning into money transfer apps across the world. One of the main reasons for this is the convenience that comes with using mobile apps to send and receive money.

In the previous years, people used to rely on expensive ways of moving money across borders. Other than being costly, it took days or even weeks before the money could hit the recipient’s account. But with the coming of money transfer apps, things have completely changed.

According to Raj Agrawal, the chief financial officer at Western Union, the demand for online money transfer services has more than tripled in the past few years. Agrawal who joined Western Union in 2006 says that this trend is expected to increase in the coming years.

For the time he has served in the company, Agrawal has positioned Western Union as a global leader in digital money transfers. WU has been in the money transfer business for more than 170 years and is present in over 75 countries around the world.

“We saw significant growth in our digital business last year and our revenue increased by up to 35 percent. This is a trend that is likely to continue partly because of the pandemic and partly because of technological advancements” said Agrawal.

Western Union is keenly focused on the global remittance market because of the great potential that exists. The company has decades of experience and is using that to give its competitors a run for their money.

Global payment network

Western Union has a 130-currency portfolio that provides the largest digital global network in the P2P payment industry. The company facilitates sending of more in more than 75 countries out of which 50 countries use mobile apps to transact.

In addition to that, WU has a global account network that reaches 125 countries – transferring billions of United States dollars to mobile wallets, cards, and bank accounts. It also has a retail network of 550,000 locations scattered across different parts of the world.

Bottom line
Technology is quickly transforming every sector of the world’s economy including money transfer services. Over the past few years, the Western Union has proved to be a leader in the digital remittance market – meeting the growing demand for online transfer services across the world.
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