Western Union has further expanded its digital footprint by allowing Australia Post to use its digital platform.
Australia Post has become the fifth post office to join with Western Union as the money transfer giant seeks to further expand its digital network.
Western Union money transfers has been working with Australia Post since 2003, when it first allowed customers to use its money transfer services. This new deal will see the Post Office take advantage of Western Union’s digital money transfer platform.
Post Office networks form a key pillar of WU’s global expansion. At a stroke, they provide extensive penetration into any new market, with thousands of branches in any one country. As well as Australia Post, they have also signed agreements with La Banque Postal in France, Russia’s Post Bank, Italy’s Postepay and the Post Office in the UK.
The deal also represents another promising chapter in the development of Western Union’s digital arm. Its transformation from a solely bricks and mortar operation to one of the most powerful forces in the digital landscape has been a surprise to many.
Its extensive investment in digital software helped it to thrive during the pandemic. With more people switching from physical interactions to online and mobile, Western Union’s multichannel offering has enabled it to thrive during what many predicted would be a challenging time.
Revenue from their digital platform surged by 38% in 2020 to more than $850 million. For 2021, they say they aim to become a $1bn digital business.
Looking to the future, the grand old man of overseas remittances is looking stronger than ever in the digital marketplace. Their ability to offer the best of both worlds for customers with a mixture of cash and digital has set it apart from its competitors – many of whom can only provide online transfers. That, together with a century and a half’s worth of name recognition, puts Western Union in a fantastic position.
Tom Cropper has been writing for us since 2015. Tom is a financial journalist and his work has appeared in titles such as the Guardian, Euromoney and many others.