Money transfer company Western Union experiences fallout from Russia suspension during Q2 of 2022
Western Union, one of the world's leading providers of cross-border business solutions and consumer money transfer services, has released its Q2 2025 financial results, revealing a mixed performance in the global remittance market.
The company reported a 4% decrease in GAAP revenue to $1.03 billion, with an adjusted revenue decline of only 1% excluding Iraq, driven mainly by a slowdown in North America retail and Iraqi revenues[1][2]. However, Digital revenue grew by 6%, and the Consumer Services segment grew strongly by 39-41%, driven by growth in travel money and bill payment services[1][3]. Their GAAP EPS was $0.37, slightly down from the previous year, and adjusted EPS was $0.42[1][2].
The number of transactions decreased by 13% Year-over-Year (YoY)[1], while the cross-border principal saw a decline of 12%[2]. The company did not provide a comparison to other global remittance players in the given paragraph.
Regionally, the company faced declines in most markets: North America (-11% YoY), Middle East, Africa & South Asia (-23%), Latin America & Caribbean (-13%), and Asia Pacific (-2%), but saw growth in Europe & Commonwealth of Independent States (+6%)[3]. This uneven geographic trend highlights challenges in traditional markets but some expansion in others.
In Europe, underperformance was due to inflation, geopolitical instability, and slowing economic growth. To counteract this, Western Union plans to increase investment in the Western Union Digital App and wallet-based digital banking platform in Europe[4].
Western Union is also focusing on customer acquisition, particularly on the digital side, and plans to build on the success of its exclusively branded locations in Brazil, with pilots beginning in Europe[3]. The company is re-allocating funds to North American marketing efforts to acquire more omnichannel customers[4].
While direct Q2 2025 comparisons to other global remittance firms are unavailable in the search results, Western Union’s revenue performance, digital growth, and strategic moves into digital currency signal a company actively adapting, contrasting with more traditional players who may lack such digital innovations. Its diversified business model and evolving revenue mix suggest it remains a significant global remittance player, though facing some headwinds in key segments and geographies.
In terms of consumer revenues, they declined by 9% in Q2 22[4]. Western Union aims to improve onboarding experiences and retention-impacting features to address this decline[4].
The company did not see a notable change in average amounts sent by customers yet, but expects an increase over time[3]. Furthermore, Western Union is adopting new technologies such as stablecoins, which may position it for future digital growth and disrupt traditional remittance models[3][5].
[1] Western Union Q2 2025 Earnings Release [2] Western Union Q2 2025 Investor Conference Call Transcript [3] Western Union Q2 2025 Operational Review [4] Western Union Q2 2022 Earnings Release [5] Western Union Announces Strategic Partnership with Stablecoin Company
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The decreased GAAP revenue, despite a 1% adjusted revenue improvement excluding Iraq, indicates a challenging business environment in the North American retail market and Iraq for Western Union in Q2 2025. Interestingly, the company experienced growth in Digital revenue by 6% and the Consumer Services segment increased by 39-41%, demonstrating Western Union's focus on investing in digital solutions, particularly in Europe, to counteract market challenges. Thus, this strategic move towards digital services could represent a shift in the traditional finance and investing landscape of the global business sector.
