Visa and Western Union Announce Expanded Collaboration Transforming How Money Travels Cross-Border
Visa and Western Union announce a 7-year agreement to enable customers to send money to friends and family globally. The deal includes issuing Visa Debit Cards, integration with Visa Direct, and value-added services for humanitarian relief. The collaboration aims to provide fast, secure, and convenient cross-border payment solutions.
The strategic partnership between Visa and Western Union represents a significant advancement in the financial services industry, particularly in the realm of cross-border payments. The collaboration enables users in 40 countries to send money to Visa cardholders, enhancing the convenience and reach of remittance services. This deal could potentially increase the transaction volume for both companies, leveraging Visa's extensive network and Western Union's remittance expertise.
From a financial perspective, the agreement may lead to an uptick in revenue for both entities through increased usage of their networks. Additionally, the issuance of co-branded debit cards could diversify revenue streams and strengthen customer loyalty. Investors should monitor the adoption rate of these services and the subsequent financial impact on both Visa's and Western Union's quarterly earnings.
Remittances are a vital economic force in many developing countries and the enhanced partnership between Visa and Western Union taps into this lucrative market. By providing a more efficient and secure method of transferring funds internationally, the companies are addressing a significant need for expeditious and reliable financial transactions.
Market research indicates that the demand for digital remittance services is growing, driven by an increase in global migration and the digitization of financial services. The integration with Visa Direct could position Western Union favorably against competitors, as it offers a differentiated service that combines speed with a broad international reach. This strategic move could capture a larger market share in the digital remittance space and set a precedent for future collaborations in the industry.
The ability to send remittances quickly and securely is crucial for economic development in many regions. The partnership between Visa and Western Union could have a positive impact on local economies by facilitating smoother financial transactions for individuals and businesses. Moreover, the development of disbursement programs for humanitarian aid represents a socially responsible initiative that can enhance the companies' reputation and contribute to economic stability in times of crisis.
On a broader scale, the ease of cross-border payments supports international trade and economic integration. By simplifying the process of sending funds, the partnership may encourage more individuals to engage in cross-border economic activities, potentially leading to increased economic growth and development in participating countries.
03/05/2024 - 08:00 AM
Using Visa Direct capability, Western Union customers in 40 countries will be able to quickly send funds to friends and family around the world
Companies plan to issue Western Union/Visa Debit Cards across North America , Asia Pacific , Latin American and Europe
Western Union’s government and NGO customers will also be able to use prepaid cards to aid humanitarian relief
SAN FRANCISCO & DENVER --(BUSINESS WIRE)--
Today, Visa (NYSE: V) announced a 7-year agreement with Western Union (NYSE: WU). Under the new deal, Western Union customers will be able to send money to their family and friends’ eligible Visa cards and bank accounts in 40 countries across five regions1 .
The agreement encompasses card issuance, Western Union’s integration with Visa Direct, and value-added services delivery including risk products. Western Union customers will also be able to receive Visa prepaid cards in select markets offering an innovative solution that bridges the physical and digital world.
Western Union and Visa are also developing disbursement programs for humanitarian organizations and governments to support the delivery of critical funds during a disaster. The programs are intended to support emergency and humanitarian payouts, cross-border pension payouts2 , and domestic benefits and disbursement payouts.
“People rely on remittances to send lifeline payments to their loved ones overseas. When we consider the urgency and need for accessibility, secure payment options with added convenience can make all the difference,” said Chris Newkirk, Global Head of Commercial & Money Movement Solutions, Visa. “Visa’s global scale and Western Union’s digital capabilities are revolutionizing how customers send funds around the world. We are proud to offer more people fast and efficient solutions for cross-border payments.”
“Aspiring populations around the world rely on Western Union to provide them with innovative and accessible financial services that offer flexibility, value and trust,” said Sam Jawad, Head of Ecosystem, at Western Union. “By strengthening our strategic collaboration with Visa, together we will deliver impactful products and services that can help empower our customers to build a life of opportunity for themselves and their loved ones.”
The agreement builds on Western Union’s existing integrations with Visa Direct in 2022 and 2019 , which enabled US and European customers to send and/or receive funds directly to eligible Visa card holders overseas.
For more information on Visa Direct, visit:
https://usa.visa.com/partner-with-us/payment-technology/visa-direct.html.
About Visa Inc.
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com .
About Western Union
The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones, and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions, and governments—across more than 200 countries and territories and nearly 130 currencies—to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com .
1 The United States , Canada , United Kingdom , Turkey , Romania , Poland , Philippines , Indonesia , Vietnam , Sri Lanka , Thailand , Hong Kong , India , Pakistan , Mexico , Colombia , Brazil , Peru , Costa Rica , Egypt , Kenya , Uganda , and Tanzania among others.
2 Availability varies by market. Please refer to your Visa representative for more information on availability.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305895918/en/
Tierney Deggelman
tdeggelm@visa.com
Brad Jones, Western Union
Bradley.Jones@wu.com
Source: Visa Inc.
How long is the agreement between Visa and Western Union?
The agreement between Visa and Western Union is for 7 years.
In how many countries can Western Union customers send money to friends and family using Visa cards and bank accounts?
Western Union customers can send money to friends and family in 40 countries across five regions using Visa cards and bank accounts.
What are some of the regions where Western Union customers can send money using Visa cards and bank accounts?
Western Union customers can send money using Visa cards and bank accounts in North America, Asia Pacific, Latin America, and Europe.
What innovative solution is being offered to Western Union customers in select markets?
Western Union customers in select markets will receive Visa prepaid cards bridging the physical and digital world.
What type of programs are Visa and Western Union developing for humanitarian organizations and governments?
Visa and Western Union are developing disbursement programs for humanitarian organizations and governments to support emergency and humanitarian payouts, cross-border pension payouts, and domestic benefits and disbursement payouts.
