Analysis of Q3 2020 Earnings for Western Union, Ria, and MoneyGram

In the ever-evolving world of global payments, three major players - Western Union, MoneyGram, and Ria - are making significant strides in the digital realm.

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Traditional partnerships are shifting, with Walmart, historically a significant portion of Ria's business, seeing a 40% decrease this year due to competition. However, Ria has found a new stronghold in Kroger, a traditional Western Union partner that has now extended its support to Ria as well.

This digital revolution is reflected in the financials. All three companies are experiencing substantial digital revenue growth. Western Union reports a year-on-year increase of 45%, MoneyGram a staggering 95%, and Ria an impressive 126%.

A notable aspect of this growth is the influx of new customers. A large proportion of the new digital customers for Western Union and MoneyGram are new to the company, indicating a successful expansion into new markets.

The economics of digital operations for these companies are holding up, with less pricing pressure than expected. Moreover, digital customers have higher retention rates compared to physical agent customers, ensuring a steady customer base.

However, the World Bank's latest forecasts for the sector may not paint a entirely positive picture for the future. The growth of these companies is primarily coming from their digital arms, while their cash-to-cash segments are declining. This shift is further accentuated by the reduction in agent exclusivity, with more companies like Kroger opening their locations to competition.

Despite the lack of specific information about the origin countries of the new digital customers in the search results, one thing is clear: the digital shift in the global payments sector is here to stay.

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