- Western Union services will be available at over 4,600 Walmart stores.
- Western Union is available in over 200 countries.
- The new partnership allows Walmart to better serve Western Union clients.
Walmart has made an agreement with Western Union, allowing the payment service provider to have its services available at its stores. The move is expected to help the hypermarket giant cater to a more robust category of customers, especially those without access to conventional payment methods.
News of the partnership impacted Western Union shares, which jumped 7% on Wednesday morning. The stock had tumbled 20% year-to-date before the news. Walmart shares had less traction, and traded at about 0.4% during opening market hours.
According to Jean Claude Farah, the President of Western Union’s Global Network, the new partnership will allow clients to receive money from across the globe while shopping at Walmart. As relayed by the exec, the synergy of the deal will additionally help boost trust among clients of both companies.
“Together with Walmart, we have a shared purpose of supporting our customers who rely on us to send money to make everyday purchases including essentials like health care and groceries.
In an age when speed, security, convenience and trust mean everything, we are offering customers greater ease, reliability, access and confidence with every transaction.”
Western Union has initiated a series of partnerships featuring notable brands over the past year.
New Partnerships for Greater Reach
Earlier this year, Western Union announced a new partnership with the AXA insurance company. The French multinational firm undertakes investment management, global insurance, and other related financial services.
With operations in North America, the Middle East, Western Europe, the India Pacific region, and currently in Africa, the company’s reach coupled with Western Union’s convenience led to the unveiling of a collaborative project.
According to AXA company execs, the new product was designed to bring affordable life and disability insurance to its French customers, as well as ten African countries.
Apart from AXA, Western Union has been successful in partnering with other blue-chip companies, such as Sberbank, Amazon, and Saudi Teleco.
Shopping at Amazon with Western Union
Among the most notable collaborations that Western Union has today is its partnership with online shopping behemoth, Amazon. While Amazon wields a sizable online clientele, Western Union has continued to remain relevant because of its innovative facilitation of cash payments.
Federal Reserve Bank statistics pertaining to popular US payment methods indicate that in-person payments account for about 73% of all transitions. About a third of them are in cash payments.
These figures make Western Union an important partner where cash transactions are involved. Its current deal with Amazon allows customers to make payments via PayCode, a service that is available in 19 other nations.
Customers who pay with PayCode are given a code upon checkout, which they will be able to take to any Western Union and settle with cash. Their online orders are shipped after Western Union sends the money to Amazon.