The data: Western Union’s consumer-to-consumer (C2C) volume declined 13% year over year (YoY) in Q2—a sharp contraction compared with 15% YoY growth in the same period last year, per its earnings presentation.
Digital C2C volume tumbled 20% YoY. Western Union’s digital business was a key growth driver earlier on during the pandemic—surging 33% YoY in Q2 2021.
What went wrong: Macroeconomic trends did not work in Western Union’s favor.
McGranahan said the majority of underperformance in digital business revenues stemmed from three of Western Union’s largest European markets. Although he didn’t say which, Russia was likely one of them.
A bright spot: Western Union secured partnerships last quarter that may have helped offset declines.
In the Middle East, it partnered with e& money and Banque Saudi Fransi—one of the largest banks in Saudi Arabia—to expand its digital business. The company also signed a deal with the UK Post to expand sending and receiving options for UK customers.
What’s next? Western Union has plans underway to help it return to positive growth in the latter half of the year and contend with the myriad of digital upstart competitors.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.