Summary of Western Union Company FY Conference Call Company Overview - **Company**: Western Union Company (NYSE: WU) - **Date of Conference**: November 19, 2025 Key Industry Insights - **Remittance Market Growth**: The global remittance market is expected to grow in line with global GDP, projected at 3-4% [68] - **Geopolitical Impact**: The business is sensitive to geopolitical events, such as elections and conflicts, which can disrupt operations [68] Financial Performance - **Evolve Strategy**: The company is largely on track with its Evolve strategy set in 2022, although the current run rate is slightly lower than anticipated due to geopolitical factors [9][10] - **Revenue Trends**: In Q3, GAAP revenue was flat, with expectations of 0% to 2% growth, indicating challenges in North America [10][12] - **Retail Business Size**: The retail business is currently valued at approximately $2.5 billion, with expectations of low single-digit shrinkage in the coming years [36][37] Digital Strategy - **Digital Growth**: The digital business is projected to grow significantly, with a goal of 50% of revenue coming from digital and consumer services by 2028 [33][34] - **Customer Acquisition Cost (CAC)**: The target is to maintain a CAC of under $20, which is considered industry-leading [27] - **Expansion Plans**: The company is expanding its digital services in underpenetrated markets, including the Philippines and Indonesia [28] Competitive Positioning - **Market Competitiveness**: Western Union is currently 70% competitive in pricing, with ongoing adjustments to maintain market position [14][15] - **Compliance and Security**: The company employs 3,000 compliance personnel to manage KYC and AML requirements, emphasizing the importance of regulatory adherence [21] Non-Remittance Revenue Growth - **Diversification Strategy**: Non-remittance revenue is expected to grow from 15% to 25% by 2028, driven by services like bill payment and digital wallets [46] - **Consumer Services Growth**: The consumer services segment is growing at over 20%, indicating strong demand for additional services [35] Acquisition of Intermex - **Strategic Acquisition**: The acquisition of Intermex is expected to add $500 million to $600 million in revenue, with significant synergies in digital capabilities and market reach [40][45] - **Market Expansion**: Intermex will allow Western Union to leverage its payout network to expand services to new corridors [43] Digital Asset Network - **Stablecoin Initiative**: The company is launching its own stablecoin, USDPT, which is expected to enhance transaction speed and reduce reliance on traditional banking systems [60][62] - **Consumer Empowerment**: The stablecoin will allow receivers to hold value in USD, providing them with more control over currency conversion [61] Risks and Opportunities - **Execution Risks**: The business is subject to execution risks related to geopolitical events and economic policies [68] - **Upside Potential**: Opportunities for growth include successful execution of the digital asset network, favorable immigration policies, and increased digital adoption [69] This summary encapsulates the key points discussed during the Western Union FY Conference Call, highlighting the company's strategic direction, financial performance, and market positioning.