Western Union, a company dedicated for money transferring around the world, has recently reported their excellent profit for the last quarter of 2014. The lower prices that they offered have been attracting more people to use their services in money transferring.
The total income made by the company’s web and mobile transfers on money went up by 21% in the third quarter of the year. The company has cut their cost rate and invested more on its mobile and online businesses.
Hikmet Ersek, Western Union’s Chief Executive Officer, has stated in a conference call that the old pricing and strategic actions in both Europe and Russia have helped them in reaching great results.
The transaction growth in both Europe and Russia is accountable for more than one-fifth of the total income of the company. This rose by 10% during the past quarter.
According to the Chief Financial Officer of the company, Raj Agrawal, they believe that the market has fairly shown the stable pricing of recent times. He also added that the company is expecting to have actions of pricing put by the end of the year.
Many other money transfer agencies besides Western Union, such as MoneyGram International Inc, are being forced to use more to be able to meet harsher fulfillment necessities to avoid money laundering in the systems of their payment.
Ersek also said something about fulfillment and trade negotiator payments. He is positive that other costs have also risen. Despite this, the business was running expenses that are discretionary very tight.
The company of Western Union was investigated by people from the Federal Trade Commission and a district court from the U.S. over scam-encouraged transfers of money made last February.
Although Western Union is still to be beaten in terms of companies working on the department, many competitors have already come about and it is only a matter of time before one of them topples the other over.