Boston, MA 05/29/2014 (wallstreetpr) – The Western Union Company (NYSE:WU), a global payment services provider, announced the expansion of its money transfer business in Myanmar by adding nine more local banks to its network. Following the expansion, the company now has 460 outlets across the country up from about 100 outlets in the country’s key commercial towns.
The company became among the first global money transfer providers to enter Myanmar and subsequently paved the way for the formalized international money transfer in the country following the lifting of sanctions in 2012.
Celebrating Anniversary
Following a sharp increase in the number of its service outlets in Myanmar, Western Union Company (NYSE:WU) becomes the largest global money transfer provider in the country.
The company marked its one-year anniversary in Myanmar early this year, and the expansion of services almost coincided with the first anniversary celebration.
In Myanmar, as in other markets, Western Union Company (NYSE:WU) provides consumer-to-consumer and business money transfer services. At the end of March 31, 2014, Western Union had more than 500,000 agents and more than 100,000 ATMS in 200 countries and territories. The company’s recent focus and expansion plans are in the emerging markets.
The company looks to the emerging markets of Asia and Africa where workers abroad seek convenient and reliable money transfer solutions to send money back home. The Western Union Company (NYSE:WU) not only boasts a global presence, the company also boasts a solid reputation in the business.
Exorbitant Fees Controversy
The Western Union Company (NYSE:WU) earlier this year fought allegations that it was part of the global network of money transfer providers that charge exorbitantly higher fees on remittances to Africa. The company was sucked into the controversy alongside Moneygram International Inc (NASDAQ:MGI) that also provides global money transfer.
Competition Pressure
The Western Union Company (NYSE:WU) may have to do more to earn bigger profits in a competitive business environment. Company earned a profit of 37 cents per share in 1Q2014 compared to the consensus estimate of 35 cents per share. However, the profit in the quarter was weaker than the profit registered a year earlier. The company cited higher expenses in the quarter, but competition is also an issue.
