Western Union, the world’s largest money transfer company, expects an improvement in 2021 as people begin to adapt to the new coronavirus, as well as expectations of increased economic incentives from the US government to help revive the economy.
Remittances reduced this year, which is a major source of the economy of developing countries, due to the decline in the number of new immigrants and the return of some immigrants to their homeland after losing their jobs.
Western Union announced third-quarter revenue of $1.3 billion, which is more than Refinitiv’s prediction of $1.25 billion, which remade their 2020 annual budget to $1.72-1.77 per share.
The company expects a better situation in 2021 and hopes to obtain economic incentives from the United States at least, which will help the United States, which is an important part of the company’s labor market, as they claim, and the company believes that then people will be accustomed to living with the pandemic and conditions will improve with the coming of the year next.
The World Bank expects remittances to decline by 7% to an estimated $666 billion in 2020 and by 7.1% in 2021.
The reopening after the bans caused by the Corona virus helped revive Western Union’s business in the third quarter, and the company launched at a higher rate than expected in electronic markets that include money traded via the Internet and mobile devices or through its electronic market partners, as the company’s growth increased in The last two quarters by 40-50%, and its revenues from the electronic market were estimated at 21% of the total revenues.