Western Union: Migration Slowdown Reduces Growth of Remittances Business

Core Insights - A reduction in migration across Latin America has led to slower growth in Western Union's remittances business in the first quarter [1][3] - The company's Consumer Money Transfer (CMT) transactions in the Americas declined by 2%, while the rest of the world saw a 10% increase, resulting in an overall 3% rise in CMT transactions [2][4] Group 1: Business Performance - The Americas contribute to half of Western Union's CMT revenue, with North America accounting for 39% and Latin America and the Caribbean (LACA) for 11% [4] - Despite challenges in the Americas, the rest of the world, which represents 50% of money transfer revenues, experienced double-digit transaction growth across all regions [4] Group 2: Migration Trends - Slower migration levels in Latin America have resulted in decreased intra-LACA remittance volumes, continuing a trend observed over several quarters [3] - The three fastest-growing corridors for the CMT business are from France to Morocco, Spain to the Dominican Republic, and the United Kingdom to Saudi Arabia [5] Group 3: Customer Resilience - During periods of rising inflation, Western Union's customers have shown more resilience compared to those of other industries, indicating the importance of remittances [6] - The company believes that even if tariffs affect consumer prices, its customers will remain relatively resilient due to the necessity of sending money home [6]