WU to launch digital banking pilot project by end of year
The Western Union Company (WU) touted its upcoming digital banking pilot in Germany and Romania in its third quarter results, according to a press release.
WU Chairman and CEO Hikmet Ersek said in the statement that the digital bank is expected to launch before the end of the year.
The digital banking pilot will offer an integrated digital banking solution with money transfer, a multi-currency account and a debit card.
Read more: Western Union launches WU store
Ersek added in the statement that WU has also rolled out WU Shop, a rewards program for purchases and cash back, in select countries.
According to the release, digital money transfer revenues grew 15% on a reported basis, with transfers hitting new quarterly highs for transactions and principals. Westernunion.com revenue increased 12% and cross-border revenue increased 16%.
The average number of monthly users increased by 8% compared to the same period last year, and the Western Union mobile app was the most downloaded app among similar money transfer companies in the third quarter. , the statement said, citing data from Sensor Tower, a mobile application marketing company.
The company also reported third-quarter revenue of $ 1.3 billion, an increase of 2% in reported and constant currencies, with the growth being driven by digital money transfer, the statement said.
Business solutions also contributed to the increase in income, but they were somewhat offset by retail money transfers as the economy was still recovering.
Earlier this week, Ersek said that developments in new digital platforms, including the digital banking pilot, “position us well to build a consumer ecosystem and drive the long-term growth of the business.”
The company’s purchasing platform, WU Shop, was launched in Germany and Austria. It is aimed at loyal members, allowing them to shop at over 12,000 merchants in over 60 countries. They can send gifts all over the world and earn money.