Western Union and MoneyGram report losses
Long-established money transfer giants, Western Union and MoneyGram, both reported revenue losses in their second-quarter, Ruby Hinchliffe reports.
After succumbing to pressures from a changing market and new digital-based challengers, Denver-based Western Union is chopping its workforce by 10% in coming months to generate $100 million annually by 2021 in a bid to cut costs.
Whilst Western Union reported a 5% decrease year-over-year in revenue to $1.3 billion, MoneyGram reported an even bigger revenue loss of 14% year-over-year, falling to $323.8 billion.
Western Union reported a 5% revenue loss year-over-year
MoneyGram also revealed a net loss of $27.2 million, compared to its net income a year ago of $2.3 million.
“Financial results in the second quarter were impacted by slower than anticipated recovery of the US-outbound market,” says MoneyGram chairman and CEO, Alex Holmes. “Along with the continuing market challenges in the US-US business.”
“Importantly, however, we reported accelerated growth from our digital platforms and returned to year-over-year growth in many key corridors as we saw a sequential increase in active, returning and new customers.”
Digital transfer is still just a small part of both businesses, but MoneyGram did report 16% of its money-transfer revenue was made up of digital revenue this quarter.
This spring MoneyGram tackled competition from challengers such as Xoom and Remitly Inc. by taking a $30 million investment from Ripple Inc., giving it access to Ripple’s xRapid network and XRP digital currency.
I had been a customer with Western Union and Money Gram and just because the person I was sending to in another country made a honest mistake when receiving the money. A lady called me from Moneygram security and drilled me asking me all these questions like I had murdered someone and after asking her questions and being honest she told me air could never use Moneygram again. I also had been using Western sending money to the same person in another country and the money transfers was going through , then one day I sent a amount I guess was over the limit to the same person I had been sending for over year. Then all of a sudden I’m not able to use Western Union. Now I understand why both money transfer companies lost money and are laying off employees , because they turn away people just because they make mistakes and treat people like criminals I even tried to get reinstated and they sent me all this stuff to my email that I couldn’t understand how to fill out. I foundn’t a money transfer company online that I use often that’s very convenient and the sending fees are so reasonable. This transfer company treat me with respect.
Western Union is in this state because of its arrogance towards their partners and customers just because they had the early entry into the market. With the oncoming competition staring at their faces they did not change but became even more audacious and aggressively rude in the way they shoved their monopolistic advantageous conditions down everybody throats. Guess this was coming to them
So difficult to locate a functioning Money Gram outlet in Hong Kong.
I was a moneygram user for many years until I discovered I can send money cheaper online with wirecash. I always get the best rates of whichever company is the most competitive that day. No wonder moneygram is going down.
I use moneygram and Western Union. They are very expensive. People are using other monetary services that actually work and give you your money when you need it.
In some stores, Western Union and moneygram will send only. They have it on there as send and receive but they don’t want to give money out, just take money. Then they put out all these propogandas about having thousands of locations Nationwide. There’s a new thing as well where they give you a moneygram check. However when you go to a cash checking place to get the money, one that has moneygram, they will charge you ten percent which is more than the amount you will u will use to send money in certain cases.
Also people in underdeveloped countries are struggling and sometimes they have kids here. They work hard and want to send money. Western Union especially will make them pay through their nose to send. So does moneygram. Just because it’s not that country’s currency I can understand that; but what is the aim of sending between so many countries when you can’t adopt to the moneytary system and provide fair exchanges without so much cost. That the same amount to send for example 1000 that will cost less in the US will cost over 100 dollars plus in a developing or underdeveloped nation.
You guys are thieves though. This need to change.
Your not able to send once they find you are being scammed. You should make sure this is NOT a scam.
For all i care they could go out of business. I have two children in jamaica i support them from here in new york for years. I have been a customer of western union sincen1991! Then about 2 years now they say i was restricted from sending money to jamaica. I gave them proof od address. Proof of income. Everything they asked me for. It was never enough to this day no one at.western union can tell me why i am restricted to send money to jamaica. But thankfully there are many other options to send money to jamaica and i have told everyone i know never to use western union. Someone pointed it out already in this thread, its their arrogance and false notion that they would dominate the market for ever. They got a rude awakening. Once upon a time there was a telephone booth on every corner in new york city they are all gone now right? So will western union. I have no beef with money.gram they have been very good to me over the years. I still use them from time to time. But for jamaica i.typically use my Digicel mycash card to transfer money to jamaica it only cost $5. Western union could go out of business tomorrow. It would not care one bit and i sure millions more share the same sentiment.
So what other alternatives are there for money transfer from country to country because WU is not working these days & its bad for any kind of transaction especially when it’s for family emergency
I don’t give 2 f…..,I’m sending my own money to whom ever I wanted to, I was blocked more than four times to fulfill my obligations…. they can run under water if they choose.
eu achei um absurdo toda essa questão,pois quando uma empresa séria não tem colaboradores responsaveis,só tende á falir…aqui fica minha indignação.