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Digital Growth Contrasts with North American Decline: Western Union's Cryptocurrency Initiative Encounters Major Challenge

Digital Growth Contrasts with North American Decline: Western Union's Cryptocurrency Initiative Encounters Major Challenge

Bitget-RWA2025/10/27 12:20
By:Bitget-RWA

- Western Union's Q3 earnings ($0.47/share) exceeded forecasts, driven by 7% digital revenue growth and 49% consumer services surge. - $500M Intermex acquisition and dLocal partnership expand Latin American reach, targeting $161B remittance market expansion. - Stablecoin adoption accelerates post-GENIUS Act, with on-chain settlements pilot aiming to cut costs and speed cross-border transfers. - Analysts remain cautious despite 55% digital transaction penetration, citing North American slump and competition

Western Union Co. (WU) surpassed expectations with its third-quarter earnings, as digital offerings fueled its growth while the company hastens its transition to blockchain and stablecoins. Shares rose 0.4% after hours to $8.15 on October 23, 2025, hovering near a yearly low, as investors balanced optimism about the digital shift with ongoing North American difficulties,

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Digital Growth Contrasts with North American Decline: Western Union's Cryptocurrency Initiative Encounters Major Challenge image 0

The company generated $1.03 billion in revenue, unchanged from the previous year, and posted adjusted earnings per share (EPS) of $0.47, topping analysts’ forecasts of $0.43,

. Although retail money transfers in North America declined, the digital and consumer services divisions made up for the shortfall: digital revenue under the company’s brand climbed 7%, and consumer services jumped 49% year-over-year, driven by travel-related and bill payment services, . Operating margin increased to 20% from 16% a year ago, thanks to cost-saving measures, .

Western Union’s digital overhaul accelerated through both acquisitions and alliances. In August, the company agreed to buy Intermex, a major Mexican remittance provider, for $500 million—a 70% premium—to strengthen its presence in Latin America,

. Additionally, Western Union joined forces with dLocal, a fintech from Latin America, to integrate local bank transfers, e-wallets, and card payments into its digital platforms, aiming to capture a share of the region’s $161 billion remittance sector, .

The company’s most notable change is its adoption of stablecoins. CEO Devin McGranahan told Bloomberg in July that stablecoins are “an opportunity, not a threat,” as

reported. This comes after the U.S. “GENIUS Act” was enacted, offering regulatory certainty for stablecoin use, . On its third-quarter earnings call, revealed a pilot project using blockchain-based settlements to lessen dependence on traditional correspondent banks, aiming to accelerate transfers and reduce expenses, .

Analysts remain wary. Wolfe Research increased its 12-month price target to $9 but kept an “Underperform” rating, pointing to stiff competition from fintech firms such as Wise and Remitly. Citigroup shared similar views, highlighting Western Union’s low forward P/E ratio (3–4×) and a dividend yield of 10–11%, but stressed the importance of “sustained growth in digital remittances.”

Despite ongoing challenges, digital channels now represent more than 40% of Western Union’s global transactions, with 55% of transfers involving digital processes at either the start or end. For 2025, the company forecasts adjusted revenue at the lower end of $4.035 billion to $4.135 billion, and expects EPS at the higher end of $1.65 to $1.75.

Rivals are also moving forward with blockchain projects. MoneyGram is preparing to launch a USDC-based app in Colombia, while Zelle’s parent company, Early Warning Services, has announced stablecoin support for international payments.

Western Union’s strategic shift mirrors broader trends in the industry. The U.S. Treasury projects that the stablecoin sector, currently valued at $300 billion, could expand to $2 trillion by 2028, fueled by the need for quicker and more affordable cross-border transactions. For now, investors are watching to see if the company can stabilize its North American operations while expanding its digital and crypto initiatives.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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