September 22, 2023

Small Business

Business Nes

Marqeta to Help Power Western Union’s Digital Banking Platform

3 min read
  • Western Union will use Marqeta’s issuing abilities to provide clients cards by its new digital banking system. 
  • WU Store will allow Western Union clients shop at much more than 12,000 retailers across 60 international locations and get cash-back benefits.
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The information: API issuer-processor Marqeta will aid power Western Union’s 

electronic banking

system in Europe, for every a press launch. Western Union will use Marqeta’s issuing abilities to provide customers virtual and bodily cards.

Chart showing remittance inflow worldwide

Insider Intelligence

Important context: Western Union has been working on a electronic banking pilot and buying system in Europe, commencing initial in Germany and Romania. The buying system, WU Store, will allow Western Union buyers shop at more than 12,000 retailers across 60 countries and get hard cash-again benefits. The banking unit, dubbed Western Union International Lender, will incorporate a multi-currency electronic wallet and debit cards.

Why it really is worth looking at: The emergence of cross-border payment fintechs like Wise and Remitly has manufactured it challenging for legacy remittance suppliers to sustain business—pushing them to look for out new growth prospects. At stake is the $774.20 billion world wide remittance sector, which is expected to expand approximately 6% year in excess of yr (YoY) in 2022, for each Insider Intelligence forecasts.

Western Union’s rival MoneyGram has pursued cryptocurrency partnerships to innovate its expert services and manage buyer attraction: The business recently collaborated with the Stellar blockchain to assist stablecoin-to-fiat remittances, and before this yr, it invested in Coinme, the crypto exchange and ATM operator it presently partnered with.

But Western Union looks to be taking a different approach—introducing entirely new companies to leverage its present user base and world-wide arrive at. And as it undertakes its banking and retail initiatives, Western Union is also building out its main remittance community with world wide partnerships.

The alternatives: The partnership gives key expansion added benefits for Western Union and Marqeta.

Marqeta’s card issuing capabilities can assist Western Union maximize customer engagement. Western Union may perhaps be branching out into banking and retail to continue to keep client quantity within just its network—and Marqeta can aid facilitate this by supplying consumers playing cards tied to their Western Union accounts. This allows Western Union capitalize on buyer paying out even immediately after a remittance is done.

Western Union can prolong Marqeta’s world-wide presence and bolster card revenues. Western Union was the top rated money transfer provider by revenues in 2020, bringing in $4.220 billion that 12 months. As a result, functioning with the firm allows Marqeta benefit from Western Union’s buyer network and lengthen its access into new markets.

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